Don't Need Your Required Minimum Distribution (RMD) Just Yet? Here's What You Can Do With the Cash Influx

Are you fortunate enough to not yet need the withdrawal from your retirement account that the IRS is forcing you to take at some point during the year ahead? If so, congratulations! And don't sweat it. You've got several options for this money whenever you get it. Here's a closer look at the four top choices, one of which will almost certainly work for you.Required minimum distributions (or RMDs) are taxable withdrawals that the IRS requires you to make from most kinds of individual retirement accounts (IRAs). Roth IRAs are exempt from RMD rules, of course, since contributions to Roth accounts weren't tax-deductible as they were being made, and distributions from these aren't taxed no matter when they're made.As for how the "minimum" is calculated, it's a percentage of the previous year's ending value of your non-Roth IRA accounts, which gets bigger with age. Your first required distribution for the year in which you turn 73 is roughly a relatively modest 3.77% of your individual retirement accounts' balance as of the end of the prior year. If you're 85 years old, however, the required distribution is pumped up to 6.25% of the previous year-end value of your retirement accounts subject to RMDs. If you're 100, you'll need to withdraw about 15.62% of the IRA's value.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool