New IRS RMD Rates Benefit Retirees
The IRS has released new Life Expectancy Tables for the first time in 20 years. If you are retired with a tax-deferred retirement account, this is good news for you!
The new tables use a longer life expectancy which results in lowering the required minimum distribution (RMD) amounts that retirees must withdraw annually from their retirement accounts.
This benefits retirees because it allows you to keep more of your retirement savings in the tax-deferred accounts, giving your money more time to grow. It also reduces the amount of required taxable distributions that will be included in your annual income, thus reducing the income tax you are required to pay.
Honorine Campisi, CPA