People who own traditional IRAs or qualified retirement plans must begin taking required minimum distributions (RMDs) when they reach the age of 70. This article discusses some of the things that senior citizens need to know as they prepare to turn 70. The real RMD age is the first April 1 of the year after the year that a person turned 70.5. People can also delay taking distributions from a 401(k) plan or any other qualified plan as long as they are still working and don’t own at least 5 percent of the company. It is also important to take into consideration the impact that RMDs will have on a person’s tax bill. Another interesting thing discussed in this article is the loophole that people can get from charitable donations.
See Mark P. Cussen, Why Age 70 is Pivotal for Retirement Planning, Investopedia, March 8, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
