What Retirees Need to Know About Increasing RMDs in 2024
2023 Sure Ended with a Bang - Increasing RMDs and Additional Fees for Retirees!
In January, WSJ came out with an important article that EVERYONE should read! The key point of the article: Due to the end of the year 2023 stock market surge, retirees may feel pain in their retirement accounts due to changes in their accounts, and additional taxes and fees!
Here is what you need to know about the impact on retirees (You are more than welcome to read the article in its entirety here):
Increased RMDs: Due to the increase in account balances, this also means increased RMDs for 2024.
Additional taxes and charges: The increase in account balances could mean pushing retirees into higher tax brackets, additional surcharges on Medicare premiums, and additional investment income surtaxes.
Raised age for starting RMDs: The article also informs us that Congress is raising the age for starting RMDs to 73 years old. This allows more time for tax-deferred growth!
This is important news as it prompts smart investors to explore options that could be better opportunities for money growth and protection!
Watch out! The tumultuous fees and taxes can eat up your retirement savings! Thankfully, there are options to customize and plan for distribution. Here are some considerations as you explore a better strategy:
Indexed Fixed Annuity. Annuities can be used for a steady income stream during retirement and can provide security to those who want to ensure that they don’t outlive their retirement savings. There are various types of annuities to choose from. You will want to consult with an experienced Financial Consultant who can help you explore those options.
Option of retiring early. Retiring early versus later can reduce the likelihood of being in a higher tax bracket. You can roll your retirement funds over and take the minimum RMD, causing you to maintain a lower tax bracket status with a customized payout.
Additional Life Insurance Policies. Make up for any loss that was not planned with additional life insurance policies to fulfill inheritance goals for your loved ones. If there are funds that you don’t need right away, maximize the death benefit to your loved ones with an additional legacy policy that can help with major purchases, funding for college or to start a business, funeral expenses, etc.
Navigating the financial waters in today’s ever changing economic environment can be stressful, overwhelming and confusing. It is critical that you consult with a trusted financial consultant who has their eye on the market, access to multiple companies and your family’s best interest in mind to bring your retirement plans to life in a way that will enhance your financial profile. I’m here to help! Schedule a FREE consultation here.
I’m Kwesi Childress, CEO & Founder of Kwesi Childress Financial Consulting!
I write about strategies to enhance your retirement savings and options for financial growth potential. I’m passionate about helping families of all ages, backgrounds and walks of life, plan for retirement and create generational wealth with power and confidence.