Federal taxes on RMD’s
Our retirement assets have grown significantly over the years. Our traditional IRA RMD’s must start in 2024. Has there ever been a proposal to tax RMD’s at capital gains rates instead of as ordinary income? It seems unfair to tax these at ordinary rates since dividends and LTCG’s are taxed at lower rates for nonretirement assets. It also seems unfair that RMD’s will increase our Medicare premiums and the taxability amount of our Social Security . Do you think these concepts might change in the future? Who can I contact to give my views on these items?
Terry Says
RMDs or other retirement account withdrawals have always been taxed as ordinary income, because the money was put into these accounts on a pre-tax basis. It has always been this way — and always will be. Find something else to aggravate yourself about because this isn’t going to change!
