RMD options
I am 71 and need to take my first RMD. Vanguard tells me my first RMD will be a little over $19k. That’s a lot in one chunk! My wife and I have an adequate monthly income so we don’t need the RMD for monthly expenses. We have lots of savings, too. Would like to minimize taxes but really am looking for ideas about how to use the net. Thought about gifting to our 3 kids and 3 grandkids but after that run out of ideas.
Terry Says
What a lovely position to be in. Assuming your grandkids are more than a few years from college, I suggest you open a 529 College savings account for them. Details in this column.
No matter what you do with the money, you will have to pay ordinary income taxes on the withdrawal at your marginal rate. If you are still working, you could put some money into an IRA — but that just increases your RMD next year!