{"id":5813,"date":"2017-09-07T12:17:46","date_gmt":"2017-09-07T16:17:46","guid":{"rendered":"http:\/\/162.241.156.118\/~azzadasset\/?p=5813"},"modified":"2017-09-07T12:17:46","modified_gmt":"2017-09-07T16:17:46","slug":"three-strategies-to-reduce-your-rmds","status":"publish","type":"post","link":"https:\/\/intelliserver.net\/wordpress\/tax\/three-strategies-to-reduce-your-rmds\/","title":{"rendered":"Three strategies to reduce your RMDs"},"content":{"rendered":"

Nothing lasts forever, not even the tax deferral on your IRA. When you turn 70\u00bd, the government will require that you withdraw money from your IRA; those withdrawals are known as required minimum distributions<\/em>, or RMDs. But what if you don\u2019t need the money? What if you want to avoid a tax hit? Here are three strategies to help reduce your RMDs.<\/p>\n

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  1. Be charitable.<\/strong> If you\u2019re 70\u00bd and planning on giving money to charity anyway, consider making a qualified charitable distribution (QCD) from your IRA. You can transfer up to $100,000 annually from your IRA to a charity free to tax. The QCD will satisfy your RMD without increasing your taxable income. Be careful though — make sure your QCD is done properly.<\/li>\n
  2. Go Roth.<\/strong> If reducing RMDs is a top concern for you, you may want to consider converting some or all of your IRA into a Roth. This is because you aren\u2019t required to take RMDs from your Roth IRA during your lifetime. While you will pay taxes on your conversion, you can exchange the one-time tax hit for a lifetime of never having to worry about RMDs and their tax consequences. Note: your beneficiaries will need to take RMDs from the inherited Roth IRA, but these distributions will likely be tax-free.<\/li>\n
  3. Do it on your own schedule.<\/strong> You don\u2019t have to wait until you reach age 70\u00bd to start taking distributions. As soon as you reach age 59\u00bd, you can start taking penalty-free withdrawals. You may want to consider transferring your IRA withdrawals into a low-turnover, taxable account. If you\u2019re retired and your income is lower this may be the time to take taxable IRA distributions so you can reduce your RMDs later.<\/li>\n<\/ol>\n

    We highly recommend that you consult with your tax advisor before taking any distribution from your IRA.<\/em><\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Nothing lasts forever, not even the tax deferral on your IRA. When you turn 70\u00bd, the government will require that you withdraw money from your IRA; those withdrawals are known as required minimum distributions, or RMDs. But what if you don\u2019t need the money? What if you want to avoid a tax hit? Here are […]<\/p>\n","protected":false},"author":1,"featured_media":5911,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[110],"tags":[192,379,327,186,14,170,194,15],"class_list":["post-5813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax","tag-ira","tag-qualified-charitable-distribution","tag-required-minimum-distribution","tag-retirement","tag-rmd","tag-rmds","tag-roth-ira","tag-tax-planning"],"_links":{"self":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/posts\/5813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/comments?post=5813"}],"version-history":[{"count":0,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/posts\/5813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/media\/5911"}],"wp:attachment":[{"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/media?parent=5813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/categories?post=5813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/intelliserver.net\/wordpress\/wp-json\/wp\/v2\/tags?post=5813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}