Educate with Educo Episode 2: RMDs

Educate with Educo Episode 2: RMDs

December 07, 2023



In this month's episode of Educate with Educo, Laura discusses Required Minimum Distributions (RMDs).

She clarifies that individuals aged 73 or older must take RMDs from traditional retirement accounts like 401(k)s and IRAs, calculated based on the previous year's account balance and life expectancy factors published by the IRS. Failure to withdraw RMDs incurs a 25% penalty tax. Laura explains the rationale behind RMDs, emphasizing their taxation as income and the potential for tax withholding strategies. She also highlights the option of Qualified Charitable Distributions (QCDs) as a tax-efficient way to fulfill RMD requirements while benefiting charities.

Schedule an appointment with Educo Advisor Group to navigate RMDs and optimize their financial planning strategies!

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