With varying rules applying to tax-advantaged investments, and penalties for forgotten distributions, now is an opportune time to review retirement accounts. Chris Hennessey talks about retirement plan actions that must take place before year-end, including requirement minimum distributions (RMDs) for individuals age 70½.
Here are additional topics for investors to consider:
- The Charitable IRA Rollover provision is now permanent. It allows retirees age 70½
or older to direct up to $100,000 to a qualified charity tax free.
- An RMD can be used as an after-tax contribution to fund a 529 college savings plan for grandchildren.
- Investors in lower tax brackets can consider converting a traditional IRA to a Roth IRA.
Retirement plan contributions should be reviewed regularly to make sure they are on track to benefit from tax advantages.