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2 Essential Strategies for Taking Your RMDs

June 15, 2021

From the Kiplinger website

Depending on how much you need required minimum distributions to live on, these forced withdrawals from traditional retirement savings accounts, such as 401(k)s and IRAs, are either essential income or a complete nuisance. Lately, Uncle Sam has been giving retirees a reprieve from taking RMDs, first by raising the age that you must take them (from 70½ at the end of 2019 to 72 as of last year) and then waiving them altogether for 2020.

Now that RMDs are back, don’t let a lump sum of cash at the beginning or end of the year be your default for how and when to take the money. Instead, investment markets and your need for income should be your guide. Even that requires planning because you should “never have to sell assets in a declining market” to take an RMD, says Howard Hook, a principal and senior wealth adviser with EKS Associates in Princeton, N.J.

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