RMD's a.k.a Required Minimum Distributions.
Required Minimum Distributions in short say that when you turn 70 and a half you are required to pull from your 401(k). You have to start taking withdrawals. The IRS set this up to be sure they never stop getting your tax dollars.
Baby Boomers who are within ten years of retirement must be able to answer three big questions around RMD's to reach the quality of life they dream of.
Can You Answer These 3 Vitally Critical Questions Around RMD's
Listen above to hear Chris' advice and this valuable input for all baby-boomers.
Question 1 - When do you have to take RMDs?
Plus, how to avoid a common mistake the makes you pay twice as much as you were anticipating.
Question 2 - Is it better to pay lump sum or monthly to meet your requirement?
The answer depends on one major factor.
Question 3 - If you're getting tax-differed growth, how long is the right time to wait to withdrawal your money?
This may be counter intuitive to what you've heard before. I'll explain why I believe it's often better to withdrawal sooner rather than later.