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

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.

(Image credit: Marat Sirotyukov)

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.

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Jerry Golden, Investment Adviser Representative
President, Golden Retirement Advisors Inc.

Jerry Golden is the founder and CEO of Golden Retirement Advisors Inc. He specializes in helping consumers create retirement plans that provide income that cannot be outlived. Find out more at, where consumers can explore all types of income annuity options, anonymously and at no cost.