6. How to Reduce Taxes on Your RMD
There are several strategies you can employ to reduce taxes on your RMD, including:
- Roth IRA Conversions: Converting some of your IRA into a Roth IRA can reduce future taxable income, as Roth IRAs are not subject to RMDs.
- Charitable Contributions: If you’re charitably inclined, you can give your Required Minimum Distributions (RMD) straightforwardly to a qualified charity through a Qualified Charitable Distribution (QCD). This can lower your taxable income and satisfy the RMD requirement.
- Withdraw Early or Later: If your total income is lower in a particular year, consider taking a larger RMD to reduce your tax burden.
Retirement Plan: Strategies to Maximize Your Savings Game
Thank you for reading this post, don't forget to subscribe!
