RMD

Required Minimum Distributions (RMDs) are the minimum amounts the IRS generally requires you to withdraw each year from certain retirement accounts—such as traditional IRAs and many employer-sponsored retirement plans—once you reach a specified age.

RMDs matter because the withdrawals are typically taxable as ordinary income, and failing to take the required amount (or taking it late) can result in IRS penalties. The exact RMD amount is calculated annually based on your account value and an IRS life-expectancy factor.

This is general information only and not tax advice. Rules can vary by account type and individual circumstances.

Roth conversion planning is the process of intentionally moving money from a tax-deferred retirement account (like a traditional IRA or pre-tax 401(k)) into a Roth IRA. The amount converted is generally taxable in the year of the conversion, but once in the Roth IRA, future qualified withdrawals can be tax-free if IRS rules are met.

The “planning” part is critical: conversions are often evaluated in the context of your current and expected future tax bracket, how the conversion could affect items like Medicare premium brackets (IRMAA) and taxation of Social Security benefits, and how the strategy may support longer-term goals such as managing future required withdrawals and creating more tax flexibility in retirement.

This is general information only and not tax advice. Roth conversion rules are complex and depend on your situation—consider coordinating with your tax professional before acting.