• George Fotiou

RMDs Back on Schedule for 2021

Required Minimum Distributions, RMDs, are back on this year for those of age in 2021, after being suspended in 2020 as an element of the CARES Act, which brought COVID relief to millions of Americans. Many clients have their RMDs set up to withdraw each year automatically. If you suspended or terminated your automatic distributions in 2020, be sure to check with your carrier or your advisor to be sure that your RMDs are back on schedule for 2021.

Many individuals use funds from their RMDs to pay for regular expenses such as housing costs or utilities. Others, who do not require the supplemental monthly income RMDs provide, may use the funds sporadically throughout the year for property taxes, holiday shopping, or a much-deserved vacation. If the RMDs are not needed at all, they may be placed into a low-interest bearing savings account. Olympic Golden Retirements recommends using some of the funds from unused RMDs to invest in life insurance if you qualify. Placing the funds in a savings account will leave your loved ones with what you’ve put in, dollar-for-dollar, whereas a life insurance plan will multiply those same dollars and leave them to your beneficiaries, tax-free.

If you would like to speak to a specialist about any concerns you have regarding your RMDs, or would like to discuss utilizing them to fund life insurance for you or a spouse, please contact us.

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This information is designed to provide general information on the subjects covered.  Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement.  Please note that Olympic Golden Retirements LLC and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer.  Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims-paying ability of the issuing company and are not offered by Olympic Golden Retirements.