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Tools like an IRA or 401(k) allow savers to make tax-deductible contributions for retirement.
On the flip side, the IRS requires people to begin withdrawals the year a person turns 73.
Required minimum distributions (RMDs) must be taken from many retirement accounts.
Automation is a powerful tool to avoid such a tax hit.Here are three ways you could automate your RMD.
The agency provides worksheets people can use to calculate the amount, as it varies each year.
There are online RMD calculators for people who dont want to calculate their number manually.
Contact Your Broker
Understandably, missing an RMD creates stress, not to mention taxable consequences.
The latter can be reduced if corrected within two years, but it doesnt eliminate it.
Full automation is one of the best choices to eliminate this stress.
Many online brokerages, including Vanguard and Schwab, provide tools to assist you with managing the process.
They can assess your entire portfolio, considering tax efficiency to ensure you comply with the Secure 2.0 Act.
Like online brokers, an advisor can automate much of the process.
Advisors can manage the withdrawn funds in a way that suits your needs best.
Using available resources to automate the process can be a good way to remove that stress.
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