Did you build your retirement nest egg by claiming tax deductions for the money you put away?
The IRS seemed so generous—you got tax deductions for the money you put in. Then the money in the retirement plan grew and grew without you having to pay any taxes.
Let’s say you just turned age 70 1/2 or older. You likely have that tax-deferred accumulation in a traditional IRA where it has yet to face any taxes. That’s over. Your day of reckoning is here.
Once you hit age 70 1/2, you’re required to take some money out of your traditional IRA accounts and pay taxes on that income. The IRS calls the requirement to take money out of the IRA a required minimum distribution (RMD).
Now that you are at the RMD age, you need to start planning. This article gives you one of a number of plans. You likely will want to use the plan in this article if you donate money to your church, a school, or some other 501(c)(3) organization, such as the Red Cross or American Cancer Society. ... Log in to view full article.
