2 Alternatives to Required Minimum Distributions

Retirees can save money and stress with these two simple alternatives to RMDs.

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(Image credit: Getty Images)

Here’s my simple explanation of required minimum distributions (RMDs): At age 72, Uncle Sam knocks on your door and asks you to pay taxes on your tax-deferred investments. You’ve gone perhaps years without paying taxes on these accounts, and he’s $30 trillion in debt. In more technical terms, an RMD is when you take out a specific percentage (based on the IRS life expectancy table) from your tax-deferred investments (401(k)s, IRAs, etc.) and pay taxes on it.

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Joe F. Schmitz Jr., CFP®, ChFC®
Founder and CEO, Peak Retirement Planning

As Founder and CEO of Peak Retirement Planning, Inc., Joe Schmitz Jr. has built a comprehensive retirement planning company focused on helping clients grow and preserve their wealth. Under Joe’s leadership, a team of experienced financial advisers use tax-efficient strategies, investment management, income planning and proactive health care planning to help clients feel confident in their financial future — and the legacy they leave behind. Joe has also written a book, titled I HATE TAXES. You can find Joe on YouTube by clicking here, where he creates educational videos for those in or near retirement. If you would like to talk to Joe’s team, you can schedule a meeting by clicking here.