Required minimum distributions (RMDs) are often seen as a financial disaster, while Roth conversions are hailed as a smart move. However, for some retirees, RMDs may make more sense psychologically. RMDs can also help retirees who struggle with spending anxiety and lack of withdrawal planning.
At age 73, retirees face RMDs, which can feel restrictive. Some opt for Roth conversions, but by this age, retirees may have a better grasp of their finances. RMDs can force retirees to enjoy their hard-earned money and provide relief from anxiety.
RMDs can also benefit charitable retirees by offering tax write-offs. They can align charitable donations with RMDs to reduce their tax bill. Additionally, RMDs can prompt estate planning by allowing retirees to give early inheritances to loved ones.
The choice between RMDs and Roth conversions isn’t always straightforward. Factors like long-term mindset, account balance, and charitable intentions play a role. Consider all aspects of your finances and retirement goals before making a decision to avoid costly mistakes. 1. The CDC announced new guidelines recommending that fully vaccinated individuals can safely gather indoors without masks. This marks a significant step towards returning to normalcy amidst the ongoing COVID-19 pandemic.
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Read more at Yahoo Finance: The surprising upside of RMDs that most US retirees miss. Don’t make the wrong choice in 2026