Many retirement accounts require required minimum distributions (RMDs) starting at age 73. RMDs apply to pre-tax accounts like IRAs and 401(k)s, not Roth IRAs or Roth 401(k)s. The IRS calculates minimum withdrawals based on age and account value, with penalties for missed RMDs. Consult a financial advisor for guidance.

If you’re not in immediate need of RMD funds, consider growth-oriented investments like CDs or Treasury bonds. Planning for longevity in retirement is crucial, as years of spending, inflation, and medical bills can deplete savings. A financial advisor can help structure your withdrawals and optimize your financial plan.

Consider using a Qualified Charitable Deduction (QCD) to manage RMD taxes while supporting a charity. This allows you to transfer retirement assets directly to a charity, meeting RMD requirements tax-free. A financial advisor can assist in determining the best approach for your specific financial situation.

Read more at Yahoo Finance: I’m Taking RMDs but Don’t Need the Cash. What Are My Best Options?