Ask Terry Questions Required Minimum Distribution taxes

Required Minimum Distribution taxes

By Terry Savage on March 13, 2020 | Financial Planning / Retirement

In 4 years we will need to take RMD’s. What can we do with the RMD dollars to minimize taxes?

Terry Says

There is nothing you can do to minimize the taxes. You will pay at ordinary income tax rates. But if you are still working, you can contribute $7,000 to a traditional IRA and age and get a tax deduction for that contribution. Or you could give the money directly to a charity — and then you wouldn’t pay taxes!

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