As you approach 70, tips like these can help trim your RMDs

If you are a member in good standing of the middle class, if not wealthier, and are in relatively good health, there are many blessings about retirement.

You have a lot more free time to pursue hobbies and other pursuits, and paying for them is not a problem. You usually have relationships with grandchildren to foster and savor. If you have managed your retirement finances well, you have more freedom to spend on non-necessities because Medicare is inexpensive, your home is likely paid in full, and you have already put aside the necessary savings for retirement.

Unfortunately, one downside does emerge once you turn 70½ — the required payment of ordinary income taxes annually on a Required Minimum Distribution (RMD) from IRAs, 401(k)s and other tax-deferred retirement vehicles. These are not inexpensive. Required distributions from your IRA are 3.65% in your first year and rise each year thereafter. At age 75, the required distribution is 4.37%; at age 80 it is 5.35%.

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