6 Steps to Cutting Your Taxes When You Start Taking RMDs

The first boomers turn 70 1/2 in July. Don’t give the IRS too much reason to celebrate.

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(Image credit: © Getty Images)

You probably haven’t marked your half birthday since preschool, but Uncle Sam is gleefully rubbing his hands together as the leading edge of baby boomers starts turning 70½ in July. Why? The IRS doesn’t want you to delay paying taxes on your retirement savings forever. At 70½, you must get serious about your strategy for taking required minimum distributions from your tax-deferred retirement savings and paying taxes on the proceeds.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.