Required minimum distributions (RMD) are mandatory withdrawals from several types of retirement accounts. As you approach retirement, RMDs are an important part of the funding puzzle you must manage. However, they can also be somewhat complicated and affect most other pieces of your retirement. To help you navigate your RMD obligations and make the most of them, here are five tips to apply.
1. Remember All RMDs.
First, you are responsible to calculate your own RMD obligation each year.
If you had investment property and decided to sell, you may not want to pay a lot on property taxes because they would eat away at your profit. Well thanks to 1031 tax exchanges, you can actually avoid paying capital taxes as long as you reinvest the money in a like-kind property. Here are some things that can help you deal with these tax exchanges without issues.
Focus on Relevant Like-Kind Property