Take Your 2023 RMDs

 

Take Your 2023 RMDs

If someone in your family has turned 73 in 2023, it may be time to start taking the required minimum distributions (RMDs) from an old 401(k) or a traditional IRA. These distributions are required so that the IRS can collect tax revenues on these “before tax” contributions. The laws for these RMDs recently changed and HERE is a quick guide designed to help you estimate how much you need to take out before April 1, 2024. The good news is that the penalty for missing your RMD has gone down from 50% to 25%. Happy Holidays!


Convert To A Roth IRA

One way to minimize your lifetime tax burden may be to convert your old 401(k) to a Roth IRA. Two of my financial planning clients recently toyed with the idea of converting their before tax money to after tax money through the Roth conversion process. For one of them (a single female, aged 69), a Roth conversion could allow her to generate $55,413 in additional wealth over her expected lifetime. For the other planning client (a married couple, aged 56 and 60), they could boost their net worth by a whopping $4,574,737 by taking decisive action. Please click HERE if you are interested in exploring your conversion options.


Contribute To A Roth IRA

If you do not need the money generated by that pesky RMD, consider starting (or contributing to) a Roth IRA. Roth IRAs are designed to collect “after tax” money that will never again be subject to the hands of good old Uncle Sam by way of the Tax Man. The only requirement is that you have earned income that lands below the IRS threshold for the current tax year. For younger investors - who may never need to know what is referred to by the term RMD - a Roth IRA is an incredibly powerful way to secure your future in a tax advantaged manner. Learn MORE!

Prepare For Your Taxes

We are still under our capacity to prepare your tax return for 2023. Because many of our investment management clients followed us from TD Ameritrade to Altruist Clearing, we are offering our current investment management clients our tax preparation services at cost ($100) for tax year 2023. This offer expires on December 31, 2023. For the full pricing of this service, please visit URL. To get started right away, please click HERE.
Location: 23 Foxridge Rd, West Hartford, CT 06107, USA

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