Required Minimum Distributions

There are a few things to keep in mind for retirement planning at year-end. RMDs, which begin at age 73 (except for Roth IRAs), are one consideration. There is a complex set of rules around when distributions from inherited IRAs must be taken out, so beneficiaries should work with their wealth planners for the correct guidance.

RMDs are counted as ordinary income and can push individuals into a higher tax bracket for a particular calendar year. Those who do not need the income may consider making a qualified charitable distribution from their IRA. This allows charitably inclined individuals to direct up to $100,000 from their IRA each year (at age 70.5 and older) to a public charity, reducing the RMD – and thus, taxable income – by that amount.