RMD’s Seminars

RMD Retirement Planning ’s Seminars

Join our RMD Seminars to gain invaluable insights into Required Minimum Distributions and ensure a financially secure retirement. Take the first step towards informed decision-making— learn more today!

  • Why are Required Minimum Distributions Required?

    Why are Required Minimum Distributions Required?

    Welcome to the introductory segment of our Required Minimum Distributions (RMDs) insight series! In this discussion, we’ll delve into the fundamentals of RMDs, shedding light on their significance and implications for retirees. If you’re envisioning a retirement where you have control over when to tap into your retirement funds, the IRS has a different plan…

RMD, also known as Required Minimum Distribution, is the minimum amount you must begin withdrawing from retirement accounts at age 73. If you reached age 72 before January 1, 2023, however, you may also begin withdrawing a minimum amount from your designated retirement plan accounts. RMD planning will require you to better understand what the process entails and which accounts are affected to determine how you will distribute your withdrawals to best optimize for tax purposes, deductions, and future savings.

What Accounts Does RMD Apply To?

Currently, RMD is required for all individuals who have traditional 401k accounts, a standard IRA, or even those who have set up 403(b) savings accounts. The only type of account that RMD does not currently apply to is traditional Roth IRAs while the initial beneficiary is still alive and well.

Why Don’t Roth IRAs Have RMDs?

  • Different Tax Structure: With a Roth IRA, any contribution made to your Roth IRA savings account is completed after already paying taxes on earnings. This is why Roth IRAs do not have RMDs, as the government has already been paid in terms of taxes. Therefore, there is no need for forceful withdraws as taxes have been paid on contributions beforehand.
  • Encourages Transition to Roth IRA: For those who are interested in long-term savings and a tax-free income once they retire, investing in a Roth IRA early on may be more appealing without the requirement of RMDs.

Why Are RMDs Necessary?

As you begin comparing retirement account types and plans, you may wonder why RMDs are necessary, especially if you prefer to save for an extended time. For traditional IRA and 401k savings accounts along with 403(b) savings accounts, RMDs are necessary for a variety of reasons, including:

  • Government Tax Revenue: With RMDs, the government guarantees that it will generate revenue from contributions once the time comes. Because contributions in 401ks, traditional IRAs, and 403(b) accounts grow tax-deferred, taxes will need to be paid upon withdrawal. A required system ensures that taxes are paid on time as your contributions accumulate over the years.
  • Savings Regulation and Usage: RMDs are also implemented to ensure that retirement funds are spent and used as intended, rather than going unused or not being put back into the market and global economy.
  • Tax Deferral Avoidance: To avoid repeated tax-deferral attempts, RMDs are utilized to ensure withdrawals are compelled, and the appropriate amount of taxes is paid on time.

Is RMD Retirement Planning Right for Me?

Understanding the basics of RMD planning is crucial for anyone who has a vested interest in a long-term, reliable retirement plan. If you’re thinking of learning more about RMD retirement planning, consider the following:

  • Age: If you’re reaching an age at which an RMD will be required, based on your current retirement accounts, RMD planning may be in the cards for you.
  • Retirement Preparedness: Once you’ve made the decision to retire, you’ll want to know all your options when it comes to account savings and RMDs.
  • Taxes: You will need to know more about your current taxable income to determine if RMD planning is right for you based on your financial plan and future goals.

Are you starting to plan for your retirement, but you’re not sure where you should begin or which retirement plan is right for you? At Pathfinder Retirement, we can help. Learn more about retirement plans by taking our retirement quiz to determine which savings plan and vision is right for you.

Ready for retirement?

Take Our Retirement
Assessment Quiz!

Take our quiz and receive tailored results of how we can help you reach your retirement goals.