Retirees with significant assets often have to plan around required minimum distributions (RMDs). If you don’t need the money in a pre-tax portfolio, annual RMDs can lead to significant taxes. A financial advisor can help you navigate RMDs and other retirement decisions. Moving money into a Roth IRA can save on taxes in retirement.

Required minimum distributions (RMDs) start at age 73 for pre-tax retirement accounts like 401(k)s and traditional IRAs. RMD amounts are based on account value and holder’s age. RMDs trigger tax events and are taxed as ordinary income. Roth IRAs are not subject to RMDs.

Converting a pre-tax account to a Roth IRA can help avoid RMDs. However, you must pay income taxes on the converted amount. Staggered conversions can help manage upfront taxes. A financial advisor can assist in calculating the impact of RMDs and taxes.

Staggered conversions from a 401(k) to a Roth IRA can eliminate the need for RMDs and reduce tax bills. Managing when and how you take RMDs is crucial. An emergency fund is essential for unexpected expenses and should be kept in a liquid account.

The IRS requires RMDs by the end of each year, offering flexibility in withdrawals. A financial advisor can provide guidance on RMDs and taxes. For financial advisors looking to grow their business, SmartAsset AMP offers marketing solutions. Compare savings accounts for emergency funds.

Read more at Yahoo Finance: Should I Convert $100k Per Year From My $1M 401(k) to a Roth IRA at 62?