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How to Reduce Taxable RMDs and Improve Your Retirement Income Plan at the Same Time

November 18, 2019

From the Kiplinger website

Adding annuity payments to your IRA withdrawals could save on taxes and help ensure a stable cash flow throughout your retirement. With that in mind, here’s a QLAC strategy to consider.

A reporter called me to ask whether investing in a QLAC would reduce a retiree’s RMDs and the tax that must be paid on them. (Regulations demand that you begin taking these required minimum distributions — and pay taxes on them — from your 401(k) or IRA beginning at age 70½.)

The short answer is yes.

The complete answer is, think about the QLAC decision as part of a broader consideration of your retirement finances.

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