One of the types of planning that we help our clients with is RMD planning and retirement withdrawals. RMD’s are required minimum distributions that the IRS forces you to take out of your pre-taxed qualified accounts like 401K’s, TSP’s, traditional IRA’s, and so forth. We receive a lot of questions when it comes to RMD planning because for 20, 30, 40, 50 years all you’ve ever known is saving rather than pulling money out of your accounts.
Well, your life has changed. You’ve stopped working. The paychecks have stopped and now you’re pulling money out of your retirement accounts for income. It’s daunting for a lot of people and sometimes people forget to do it and that’s why it’s good to work with someone like Abe.
We had a couple come in recently with their first RMDs due this year. They’re both still working but he’s going to retire next year. They have about 1.2 or 1.3 million saved and we saved them about five to six thousand dollars simply by giving them a ‘Where do I Stand Plan.’
In a lot of firms, RMD’s are a missing piece of a retirement plan and that’s something Abe is able to help you work through.