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I think that the intent was to defer taxes until retirement, when one is in a lower tax bracket. Distributions are required (else a penalty) when one is 70.5 o
by k310 3y ago
I think that the intent was to defer taxes until retirement, when one is in a lower tax bracket.
Distributions are required (else a penalty) when one is 70.5 or older, According to an extremely complex formula that only investment companies seem to understand, and it's all taxable.
Only ROTH IRAs are tax free, but they are funded with money that has already been taxed, and have limitations.
- BXlnt2EachOther 3y agoone note on required distributions, I think they recently were relaxed with the SECURE 2.0 Act. Based on a couple searches, the RMD age went up to 73, and in 2033 will increase again to 75 (given the start date this will affect those born after 1958).