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What Happens If the RMD Age is Raised Again?

November 19, 2020

The Principle:

Have you started thinking about RMDs? At what age will you need to start paying attention to this and why does it matter?

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

The RMD age was recently increased from 70 and a half to 72 years old. What happens if this raises again? Would this be good or bad for investors?

Depending on the person, this may make a difference in your overall financial plan and tax strategy. Waiting longer to be required to take distributions allows more opportunity for Roth conversions or other options.

If you have assets in taxable accounts, what can you do to avoid paying taxes on them? Remember, tax avoidance and tax evasion are different things. Raising the RMD age would allow you to delay paying taxes on your taxable accounts a little longer since you wouldn’t be taking distributions yet. What if you need the money sooner? Should you start taking it out before the RMD age?

Planning with the right strategy in mind for you will help you better reach your goals and dreams in retirement. So, understanding and taking your RMDs at the opportune time can make a difference when it comes to how much money you have to use the way you want in retirement.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular segment.

[0:16] Congress recently increased the RMD age. Is that good or bad?

[2:37] – What’s the difference between tax avoidance and tax evasion?  

[4:14] – Why are there RMDs?

[6:38] – How often do people know they can think strategically about taxes?

Today’s Truth:

“What is right for you in your situation? What kind of goals and dreams are you trying to accomplish in retirement?”

Brian Bowen

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Brian Bowen – Contact

Brian Bowen Integrity Financial Planning Roanoke Virginia discusses the deferred payment plan Bobby Bonilla and his agent were able to work out