From Nasdaq.: 2025-01-03 03:00:00

Seniors face mandatory annual withdrawals known as Required Minimum Distributions (RMDs) starting at age 73, with a 25% penalty for not complying. While some retirees already meet RMDs with routine withdrawals, others may not need the money immediately. Options for unused RMDs include investing for future living expenses, reinvesting in a taxable brokerage account, or making a qualified charitable distribution (QCD) to a charity. It’s important to plan ahead and consider the financial implications of each choice.

For those with extra money after meeting RMDs, options include saving for future expenses, reinvesting, or giving to charity through a QCD. Decisions may vary annually, so it’s essential to be comfortable with the financial impact of each choice. Remember to explore options early to maximize benefits and secure a stable retirement income.



Read more at Nasdaq.: 3 Ways to Use Your Required Minimum Distribution (RMD) Strategically in Retirement