RMD‘s (Required Minimum Distributions) are the government’s way, of not letting us ride the no tax/pre-tax contributions wave of qualified investment accounts for longer than they want!
Today’s RMD‘s for individually owned accounts you must begin drawing at age 73 (under current laws if not changed, in 2033/born 1960 the new age is 75 to start!)
Beneficiary IRAs, also known as Bennie IRAs, have various tax mandates depending on the death and age of the decedent, which is the original owner of the account.
Technique and Actions
We like to thread the needle between being later in the year, so as to accumulate tax deferred growth, but not be so near the end of the year that we get caught up in the mad dash to the change of the calendar adding stress to possible processing.
As such, those of us that have not met our Required Minimum Distributions or are new to the RMD mandate, we will begin working on them in the next several weeks with a goal of having them finished by mid November at the latest.
Tax Harvesting
Another item that occurs this time of the year is the adjustment of portfolios to minimize taxes or equalize them in a manner that is most tax appropriate. Skipping the details of the deep in the weeds techniques, we take careful notice and make adjustments in order to even out our taxes on a year by year basis, and we also take into account our most recent years Income Tax Return (another reason we need to have them in hand) in order to optimize our personal tax situation!
Bottom line, with these two events, occurring unique transactions may occur over the next Four weeks or so!
Have a Great “RMD and Tax Harvesting Reminder” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the images. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
