Required Minimum Distributions, or RMDs, can create stress for retirees when the IRS tells them to withdraw more money from their IRA or retirement account than they actually need to spend. Many people wonder if a larger RMD means their retirement plan is off track, if they are spending too much, or if they are at risk of running out of money.

In this episode of Make It Personal, we explain a simple but powerful distinction: an RMD is a withdrawal rule, not a spending rule. Just because money has to come out of your IRA does not mean it has to leave your retirement plan. You may still have choices after taking the distribution and paying the tax. This conversation is for retirees, people approaching retirement, and anyone trying to understand retirement withdrawals, IRA distributions, safe withdrawal rates, Roth conversions, Qualified Charitable Distributions, and tax planning in retirement.

Highlights:

→ You’ll learn why RMDs can feel bigger than expected and why that does not automatically mean something is wrong with your retirement plan.

→ We explain how retirees may be able to reinvest excess RMD dollars in a taxable account, plan ahead with partial Roth conversions to potentially reduce future RMDs, and use Qualified Charitable Distributions to support causes they care about while satisfying RMD requirements.

→ You’ll also hear why safe withdrawal rates are guidelines, RMDs are rules, and your personal retirement plan should be flexible enough to respond as markets, spending, health, goals, and values change.

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Investing involves risk, including loss of principal.

This podcast is for educational purposes only and may include references to concepts that have legal and/or tax implications. Mutual of Omaha Investor Services, Inc. does not provide tax or legal advice. Please consult with the appropriate professional regarding your personal situation prior to making any financial decisions. Strategies discussed may not be suitable for everyone. Securities and advisory services offered through Mutual of Omaha Investor Services, Inc. Member FINRA/SIPC. Mutual of Omaha Advisors is a division of Mutual of Omaha Insurance Company.