What the IRS Isn’t Telling You…


The IRS always has a few tricks up their sleeve.

And one of them is so complex and dangerous, Forbes called it “The IRS’ version of weapons of mass destruction.”

I’m referring to required minimum distributions, also known as “RMDs.

And they could have serious financial consequences for your retirement savings.

RMDs are exactly that – required minimum percentages you must withdraw from your IRA, 401K, and other tax-deferred retirement accounts.

And your withdrawal amount is determined by your account balance and life expectancy (as defined by the IRS).

If it sounds simple, it’s not.

Once you turn 72, the IRS forces you to start withdrawing money from your retirement accounts, whether you need the money or not.

But these required minimum distributions could trigger a host of other problems …

✓ RMD withdrawals are treated as taxable income, and your withdrawals (combined with social security and other investment income) could force you into a higher tax bracket.

✓ If you must take your required minimum distributions during a stock market correction, or a bear market, you could be forced to sell your investments at a loss.

✓ There are plenty of rules and even more rules about those rules. And if you make a mistake, you could be hit with a 50% tax penalty – the highest penalty levied by the IRS.

With a threat of higher taxes looming, RMDs could soon become even more dangerous.

The key to warding off any IRS-induced headaches is to get in front of RMDs in your 60’s.

To learn more about how to successfully navigate RMDs in retirement, check out some options below.

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Whenever you’re ready, here are 3 ways we could help you navigate the threats to your financial security…

  1. Watch an on-demand, online discussion about different pillars of retirement planning. Click HERE.
  2. Please join us for one of our upcoming free, educational events about planning for retirement. Check out our next events HERE.
  3. If you want to learn exactly how much money you could save in taxes when you retire, schedule a free customized B.O.S.S. Retirement Solutions Tax Analysis with one of our fiduciary advisors by calling (801) 682-1493.

Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. Our firm is not affiliated with the U.S. government or any governmental agency. Please note that we are unable to accept any trade requests via email, voice message or text.

 

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