At the end of last year Congress passed the SECURE Act, which had a pretty significant impact on individual retirement accounts. The one change I want to focus on in this brief letter is the impact of the new law on Required Minimum Distributions (RMDs). Continue reading “SECURE Act: Changes to Required Minimum Distributions (RMDs)”
If you have a large retirement account balance (e.g. IRA, 401k, 403b) a Roth conversion may make a lot of sense in retirement. For some people, a Roth conversion can drastically reduce income taxes over their lifetime (and their children’s lifetimes).
Many people, upon retirement, suddenly find themselves in a low tax bracket. For example, assume you retire at age 65. You no longer have any earned income. Additionally, you have over five years before you’re required to begin withdrawing money from your pre-tax retirement accounts like IRAs, 401ks, and 403bs, etc…
This creates a great planning opportunity!