IRAs and 401(k)s Are Nice Now, But Will RMDs Hamper Your Retirement?

We’ve got four years left until tax rates are set to revert to higher levels, so workers may want to shift their thinking away from 401(k)s and traditional IRAs in favor of Roth accounts.

A man with a white beard and a ball cap looks dismayed.
(Image credit: Getty Images)

Most people are conditioned throughout their working lives to save as much as possible for retirement and to be prudent investors.

Unfortunately, most people mindlessly put money in tax-deferred retirement accounts, such as traditional IRAs or their employer-sponsored 401(k)s. That approach helps them save on taxes during their working life, and it’s an effective way to build savings. But it’s not in their best interests, as they reach their 50s and 60s, to keep contributing money willy-nilly to their IRAs and 401(k)s.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Larry Goldstein, Retirement Income Planner
President, Meridian Retirement Solutions

Larry Goldstein is president of Meridian Retirement Solutions, based in South Florida, and a retirement income planner. A graduate of American University, he’s frequently featured in media outlets for his financial insights.