Attention, Retirees: You Have Less Than 2 Weeks to Make This Important Financial Move
If you have money in a retirement savings plan that isn't a Roth IRA, you're probably familiar with required minimum distributions, or RMDs. RMDs were initially required starting at age 70 1/2, but that age was recently pushed back to 72.
Taking RMDs is no big deal for some seniors -- namely, those who need that money anyway to pay their bills. But if you typically take your RMD not because you want to, but because you have to, then you're probably aware that doing so can be a pain for a couple of reasons.
First, by removing that money from your retirement plan, you lose the option to invest it in a tax-advantaged fashion. Second, RMDs from a traditional IRA or 401(k) create a tax obligation for you. Not only must you pay taxes on the money you remove from your account, but your RMD could push you into a higher tax bracket altogether.
Source Fool.com
