If you're reviewing your Required Minimum Distribution (RMD) from a qualified retirement account, there are several issues you should consider in order to make the most of your funds and meet your financial goals.
First, if your RMD is more than you need for living expenses, consider transferring the excess to a non-qualified account for re-investment rather than leaving it in cash. You should also verify that any other retirement accounts subject to RMDs will be satisfied, and consider the impact of market conditions on the value of your qualified account. If the value is significantly up or down, you may want to accelerate or spread out your withdrawals in order to lock in gains or avoid selling assets at lower share prices.
If you've inherited a qualified account, be aware of the unique RMD rules that may apply due to the SECURE Act, such as the 10-year rule which requires non-eligible designated beneficiaries to withdraw the entire balance of the account within 10 years of the account owner's death. You should also consider whether you're eligible for any exceptions, such as if you're still working and contributing to an employer-sponsored account or if this is your first year subject to an RMD.
It's also important to review your tax withholding to ensure that it's accurate, and consider making a Qualified Charitable Deduction (QCD) if you're required to take a RMD and planning to donate to charity this tax year. QCDs can be a tax-efficient way to donate, but be mindful of the requirements, such as limits and the requirement that the recipient be a qualified charity.
By considering these issues when reviewing your RMD, you can make the most of your funds and meet your financial goals.
The commentary on this website reflects the personal opinions, viewpoints and analyses of the Ascend Investment Partners employees providing such comments, and should not be regarded as a description of advisory services provided by Kesler, Norman & Wride, LLC dba Ascend Investment Partners or performance returns of any Ascend Investment Partners Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Ascend Investment Partners manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
Ascend Investment Partners provides links for your convenience to websites produced by other providers or industry related material. Accessing websites through links directs you away from our website. Ascend Investment Partners is not responsible for errors or omissions in the material on third party websites, and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites.
To Get Started Click Here
Sign Up for Email to stay in touch