Why You Should Take Your RMDs Early in the Year

Required Minimum Distributions (RMDs) can be a tricky thing to navigate.  This has always been true, but even more so for last year (2020), when some of the rules either changed or were temporarily put on hold.  Not understanding these rules, or having the wrong information, can be costly.

But did you know that you can potentially work things to your advantage where RMDs are concerned with just a little bit of strategizing?  In this week’s edition of Lucia Capital Group Weekly, our “Professor” Rick Plum CFP®, gives you a brief overview on what was different for 2020, and explains why it just may be better to take your RMDs early in the year, rather than later.

Important Information:

The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.

IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.

Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

Start Your Strategy

Personalized investment advice and support to help grow your portfolio