“Hi this is Joshua Cicora with Retirement Help talking to you today about RMDs (Required Minimum Distributions). One of the many things about retirement that everybody needs to know but everybody’s afraid to ask. 

While you were working, you’ve been saving for retirement in accounts such as 401Ks, traditional IRAs, etc. As you’ve been doing that you’ve received a tax deduction. But now that you’re turning 73 or 75 depending on the year you were born, Uncle Sam says now you have to start taking money out of those accounts, a bit every year, to start cashflowing your retirement. And he’s looking forward to you paying taxes on those distributions. 

In most situations you will have to pay taxes on Required Minimum Distributions. There are some limited exceptions where you can do charitable giving out of those distributions and have those then get deducted on your tax returns. In general, though, be expecting to pay taxes on those as you take them out. That’s why it’s important to work with a financial advisor who can help you have taxes withheld as you takes those distributions out. 

That’s all we have for today. Be sure and hit that subscribe button and the little bell so you get notified when we drop more of these videos telling you how retirement works.”