Happy birthday to you! Today, as we celebrate your 73rd birthday, we also want to highlight an important financial aspect that comes with this special age. It’s time to embrace your required minimum distributions (RMDs) and make the most of your retirement plans!
RMDs at 73
Here’s the scoop: in most circumstances, once you reach the age of 73, you must begin taking RMDs from your traditional Individual Retirement Account (IRA) and other defined contribution plans. It’s like a gentle nudge from the financial world to ensure you enjoy the fruits of your retirement savings. But hey, here’s the exciting part—you can continue contributing to your traditional IRA even past the age of 70½ as long as you meet the earned-income requirement.
RMDs may seem like a new chapter in your financial journey, but they also present an opportunity to reassess your retirement goals and ensure a comfortable future. Our team is here to guide you through the process, answer any questions you may have, and help you navigate this requirement with ease.
So, as you blow out the candles and reflect on the incredible experiences you’ve had over the years, let’s also raise a toast to the financial wisdom you’ve gained. Cheers to making the most of your retirement savings, embracing RMDs, and setting yourself up for continued financial success! Wishing you a birthday filled with joy, love, and exciting possibilities. Here’s to many more years of happiness and prosperity!
Possible RMD Strategies
Once you reach age 73, you must begin taking required minimum distributions (RMDs) from your 401(k) or any other defined contribution plans in most circumstances. Withdrawals from your 401(k) or any other defined contribution plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
Once you reach age 73, you must begin taking RMDs from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
RMDs at 73 present a new chapter in your financial journey. By understanding the rules, calculating your RMDs accurately, and exploring different strategies for managing them, you can make the most of this opportunity to reassess your retirement goals and ensure a comfortable future. Remember to consult with a financial advisor to determine the best approach for your unique situation.