Hi Reader,
Required Minimum Distributions (RMDs) are the IRS’s way of saying: you’ve deferred taxes long enough. It’s time to start pulling money out of your pre-tax accounts, whether you need it or not, and pay ordinary income tax on every dollar.
What most people don’t realize is that RMDs are designed to grow.
The calculation is based on your account balance divided by a life expectancy factor that gets smaller every year.
Even if your account stays flat, the required withdrawal increases.
If your account grows, the distributions grow even faster.
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David N. Waldrop, CFP®
Owner of Bridgeview Capital Advisors, Inc. a Registered Investment Advisor.
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