You know all that money you’ve been contributing to your tax-deferred retirement accounts over the years? Now that you’ve reached 70 1/2 years old, the IRS would like to start collecting taxes on those contributions.
Each year, for the rest of your life, the IRS requires you to withdraw a minimum amount from your account. This RMD is then taxed. You are of course allowed to withdraw more than the RMD amount, but that additional amount will also be taxed.
What’s affected? All 401(k), 403(b) and 457(b) retirement plans, traditional IRAs, simple IRAs, SEP IRAs, pensions and profit sharing plans are included. Roth IRAs are exempt as they are tax-free. Your RMD will be calculated by a formula that factors in your life expectancy, and it is recalculated every year.
Have questions? Confused? You needn’t be. At PCA we’ve dedicated our professional lives to helping our clients understand all the options and implications of RMDs so you can make smart decisions about your financial future.
With a relaxed 45-minute conversation, you and Ryan can explore which investment options may fit your unique situation the best. Take control over your money and your financial future!
We make our investment management fees and expenses very transparent. You won’t receive 48 pages of financial mumbo-jumbo to wade through, and no brokerage trading fees!
As an independent financial advisory firm, we have access to thousands of investments and strategies, including institutional share-class funds to help minimize your investment costs.
Our process is comprehensive. We review all aspects of your investments, tax planning, retirement income planning, estate planning and all matters that may affect you.
We have a strategic partnership with a CPA firm providing tax services and guidance to our clients in coordination with your overall planning decisions.
We have an independent insurance brokerage firm providing choices for clients who are interested in insurance products.
Our team is forthright, talented and committed to truly top-notch service. Generous with our knowledge, we offer free educational events because a well-informed client is a better client!