IRA

Retirees of a certain age face the harsh reality that the IRS is lurking in the shadows. As soon as they turn 70 ½ years old, the IRS comes knocking. “Hello, Mr. Retiree,” says the nice IRS man. “You’ve had the tax-free use of this money for years and you have built up a nice little nest egg. Now we want our share.” They get their share by requiring you to take minimum distributions every year from your retirement savings. The distributions are taxed as ordinary income which makes the IRS man very happy. Now what if I told you there was an easy and perfectly legal way to beat the IRS man at his own game?

If you are 70 years old, you have probably already discovered that the IRS has special plans for you this year. They have been watching for years as you have socked away pre-tax money into your retirement accounts. Now, they are finally going to get some of the taxes you’ve been avoiding, by requiring you to take minimum distributions or RMDs from your retirement accounts.