What Are RMDs?
Unlike taxable accounts, funds cannot stay in retirement accounts indefinitely. The requirement is to distribute a minimum percentage annually once you attain a certain age. The reason for these “required distributions” is to make sure that Uncle Sam gets his due. When funds are contributed to retirement accounts, it is with pre-tax dollars with the assumption that the saver is in a higher income tax bracket when contributing versus when it comes time to distribute (if the expectation is that this will not be the case, there are other options to consider so speak with your financial advisor).
Even though the past few years have been a challenge for everyone in very personal and different ways, one commonality we all share is that these unusual times have reminded us to cherish what we do have and review/revise our life priorities.
Karen and John have done well in both their professions and their portfolios over the last 25 years. They have two children, and all four members of the family are animal lovers. Both John and Karen have become actively involved with their local SPCA. They have been so personally grateful and impressed with the institution that they have been regular financial donors, and they intend to support the SPCA through their estate.
We have all given and received gifts throughout our lives, whether it be for the holidays, birthday, wedding, baptism, or bat mitzvah.
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