May 23, 2022
If you’re 72 or older, the government makes you take Required Minimum Distributions every year. RMDs consume a percentage of your retirement assets. But thanks to new data that shows Americans living longer, the IRS has revised the RMD tables so that they’re at a lesser percentage. That means fewer taxes to pay. That seems like good news, right? Does this change your thinking about the IRA to Roth conversion?
An annuity is simply a contract between you and an insurance company. In exchange for a lump sum, it promises periodic payments for a certain period. Annuities and 401(k)s both can provide long-term savings, tax-deferred growth and probate-free way of passing assets to beneficiaries. But an article on the NASDAQ market site makes the argument that an annuity is better than a 401(k), especially later in life. With all the negative press on annuities, is there a change of heart happening here … even on Wall Street?