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Do I Have to Spend My RMD?

| October 17, 2019
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Do I Have to Spend my RMD?

While the IRS requires investors age 70 ½ and over to take a Required Minimum Distribution (RMD)  from tax-deferred retirement plans each year, some investors do not need this money. Investors are able to place it into a taxable account. Investors might consider converting their Traditional IRA to a Roth IRA, which is not subject to distributions until the death of the owner, before age 70 ½, understanding that earlier payment of income taxes will apply. There are a number of options and investment vehicles which investors might consider and a conversation with a financial advisor and your tax advisor may help to determine the appropriate action for your individual circumstances.

This information is provided for educational purposes only and not as specific advice for any individual.

Seek professional advice before taking any action in regard to your finances.

Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversation from a Traditional IRA to a Roth IRA. The converted amount is generally subject to income taxation.

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