Pension Corporation of America Wealth Management Pension Corporation of America 2133 Luray Avenue Cincinnati, OH 45206 513-281-3366 fax 513-281-1799 wealthmanagement@pencorp.com www.pencorp.com
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Required Minimum Distributions (RMDs)
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| | Should You Delay Your First RMD?
Remember, you have the option of delaying your first distribution until April 1 following the calendar year in which you reach age 73 (or April 1 following the calendar year in which you retire, in some cases).
You might delay taking your first distribution if you expect to be in a lower income tax bracket in the following year, perhaps because you are no longer working or will have less income from other sources. However, if you wait until the following year to take your first distribution, your second distribution must be made on or by December 31 of that same year. Receiving your first and second RMDs in the same year may not be in your best interest. Since this "double" distribution will increase your taxable income for the year, it will probably cause you to pay more in federal and state income taxes. It could even push you into a higher federal income tax bracket for the year. In addition, the increased income may cause you to lose the benefit of certain tax exemptions and deductions that might otherwise be available to you. So the decision of whether to delay your first required distribution can be important, and should be based on your personal tax situation. |
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Advisory Services Offered Through PCA Investment Advisory Services, Inc. Securities Offered Through L.M Kohn & Company 10151 Carver Road, Ste. 100., Cincinnati, OH 45242 Member FINRA/SIPC And a Registered Broker-Dealer not affiliated with PCA Investment Advisory Services, Inc. |
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024. |
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