Also, how do I determine what the amount of my RMD should be?
Blame the labyrinth of rules on those sweet tax breaks we get with retirement accounts.
Uncle Sams kindness has a limit.
Until recently, you had to start taking distributions by age 70 12.
But last year, the SECURE Act bumped that to age 72.
Then coronavirus happened andthe market crashed.
Why does the IRS care when you withdraw your money?
Well, when your moneys in a tax-deferred account, you havent paid income taxes on it.
By the time youre 72, the IRS is itching to get its cut.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Go ahead and start now, but be sure to bookmark this post so you could easily return later.
Well keep it updated as offers changes or expire.
As for your second question about figuring out your required distributions: This part gets really complicated.
For someone who turns 72 in 2020, the life expectancy factor would be 25.6 years.
So many retirees struggle with basic living expenses on little more than what they get from Social Security.
The interest you earn isnt taxed at the federal level.
you could start earning wages again by getting a part-time job.
There are no age limits for contributing to a Roth IRA as long as youre earning income.
Robin Hartill is a senior editor at The Penny Hoarder and the voice behind Dear Penny.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
