RMDs, or Required Minimum Distributions, are withdrawals that are required by the IRS each year out of your traditional retirement accounts like 401(k)s and IRAs starting at age 72. The money that you have to take out annually by December 31st at midnight is taxed based on your income tax rate for that tax year. Read this article about RMDs, and call us if you have any questions or don’t understand it: https://www.cnbc.com/2021/03/01/required-minimum-distributions-on-retirement-plans-are-back.html We are happy to discuss ideas with you and/or your tax professional. You can reach Benning Financial Services in Bismarck, North Dakota toll-free at (877) 412-9425.
Read More
Archives for Retirement Planning
What is a Roth Conversion?
To understand what a Roth conversion is, you must first understand some of the basics about the different types of retirement accounts, called “qualified accounts.” Pensions Also called defined-benefit plans, pensions are paid for by employers. They have largely gone away for Americans in the private sector starting with the passage of three laws during the Reagan administration, the Tax Equity and Fiscal Responsibility Act passed in 1982, The Retirement Equity Act of 1984, and The Tax Reform Act and Single Employer Pension Plan enacted in 1986. The lack of pensions is one reason why it’s important for people to
Read More
How Rich Do You Have to Be in Order to Retire?
Even though perceptions have changed during the pandemic with more Americans now saying they need less money to feel rich1, when it comes to retirement, most people are still unclear about how much they will need to have saved before they can quit their jobs. The answer to that question is different for every person. Here are some of the things you need to think about in order to get a realistic retirement number in mind. What do you want to do during retirement? Where will you live? Different people have different retirement goals and visions. You may not
Read More
How COVID-19 Has Impacted Retirement Confidence
The Transamerica Center for Retirement Studies recently conducted an online survey of more than 6,000 people in the U.S. and found that many are feeling financially vulnerable. Americans are feeling a distinct lack of confidence, particularly when it comes to retirement. Whether employed or unemployed, the survey found that 23% of workers are no longer certain they can retire comfortably following the coronavirus pandemic. Not unsurprisingly, the insecurity was highest for baby boomers, born between 1946 and 1964, who are closest to retirement—32% said their confidence in their ability to retire has gone down due to COVID-19. Meanwhile, 25% of
Read More
