By Terry Savage on November 17, 2023 | Financial Planning / Retirement

I am 88 years old and have $300,000 in IRA. Is there any way to reduce taxes?

Terry Says

You MUST take your RMD before year end! Did you read my recent column?

And you MUST pay income taxes on the RMD. That should be done by having the custodian withhold at least 20% in income taxes. If it’s too much, you’ll get a refund when you file your tax return next spring.

And since you got a tax deduction — and all that tax-deferred growth along the way — yes, you must pay your taxes now!

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