With varying rules applying to tax-advantaged investments, and penalties for forgotten distributions, now is an opportune time to review retirement accounts. Chris Hennessey talks about retirement plan actions that must take place before year-end, including requirement minimum distributions (RMDs) for individuals age 70½.
Here are additional topics for investors to consider:
- The Charitable IRA Rollover provision is now permanent. It allows retirees age 70½ or older to direct up to $100,000 to a qualified charity tax free.
- An RMD can be used as an after-tax contribution to fund a 529 college savings plan for grandchildren.
- Investors in lower tax brackets can consider converting a traditional IRA to a Roth IRA.
Retirement plan contributions should be reviewed regularly to make sure they are on track to benefit from tax advantages.
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For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam does not provide tax or legal advice.