So you want to rollover your unwanted RMD (required minimum distribution) into an IRA? Not so fast! It’s not 2020 anymore (thank God!) when no one had to take an RMD, and that ONE-TIME exception allowed by the CARES Act no longer applies. The rules for 2021 say that you cannot, we repeat, CANNOT roll over your RMD into an IRA or any other retirement account. As Ed Slott would say, “How money moves matters!”
This year, you must take your RMD and follow the rules or the consequences will be expensive. Join Dennis and Heidi this week as they refresh your RMD memory. Also, this is a good week to have our own Shelley Osborne live to give you a few tips on understanding tax forms and filing taxes this year. Her advice … “Pay attention to the form changes!”
We think it’s fair to say that the main goal in retirement is to do it once. No one dreams of going back to work once you have punched the proverbial time clock for the last time. According to InvestmentNews and a study done by Clever Real Estate, the pandemic has doubled retiree debt partly because of the need for credit. Many retirees are struggling to live the pre-retirement lifestyle and are going into debt to cover basic expenses. This begs the question, “How much should one save for retirement?”
We’re so glad you asked! Today, Dennis and Heidi are going to share what the average retirement savings per age should be vs. what the national average is. This will help you benchmark your situation and adjust as you approach the retirement time clock!
The last time Ed Slott, “America’s IRA Expert,” joined us on the air, we were waiting on pins and needles to see who the next U.S. President would be. Well now that we know, we also know a few more things about the coming year … like that you must take your RMD (required minimum distribution) and that tax rates might be changing. Ed has a few surprises to share as well.
The anxiety folks are feeling hasn’t disappeared, but it has shifted to, “What now?” We’re hoping to give you some measure of control from Ed’s perspective.
The American College New York Life Center for Retirement Income released a QUIZ. last year to test your retirement knowledge. It might be worth your time to take it and then tune in to our show. Why? Because retirement is now 100% your responsibility. Gone are the days of simple retirement planning, which included a pension, Social Security and savings. Today, we are left to our own resources and knowledge to create a plan. Plus, there are a lot of factors to consider outside of different savings vehicles. For example, when surveyed, young Baby Boomers changed jobs 11.7 times in their career. Add to this longevity and the responsibility of caring for elderly parents and adult children, and there’s a lot more to consider when planning where the money needs to go.