Required Minimum Distributions (RMDs) are a TAX BOMB that many soon-to-be retirees are ignorant of.
You can’t afford to be.
Your RMDs can be absolutely BRUTAL when it comes to your taxes.
RMDs can certainly put you into a higher tax bracket, thus you pay more to the IRS.
However, RMDs can also increase your Social Security taxation too.
And, yes AND, RMDs can increase your Medicare Part B and D premiums as well!
Oh, we’re not talking small increases in premiums either. Doesn’t take much income to have your Medicare premiums double..and more.
In this video, we bring back Bob and Jane, our favorite pre-retiree couple.
But now they are only 55 years old. Bob doesn’t work. Jane has $400k in her 401k that she is going to stop contributing to.
She expects to get 6% annual rate of return. And will not take anything out of it until she is 70 years old.
Just watch what happens next.
You’ll be shocked.
I need to recognize Don Pistulka for the spreadsheets he has created and made readily available for the whole world to use. Just a wonderful resource indeed. His website is here… http://pistulka.com/
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