Deferral of IRA Required Minimum Distributions Using Your 401(k) Plan

By Barry C. Feldman

With the cost of retirement increasing each year, many people approaching retirement age have determined that the life of leisure will have to wait.  The need to continue working, even beyond age 70, has caused many to seek ways to defer receipt of traditional IRA distributions during the period in which they continue to work, until that time when they actually begin retirement.  If this can be accomplished, it will have multiple salutary effects.  First, one can avoid receiving additional income that will be taxed at a higher income tax rate, because you are still receiving employment income (and, after age 70, mandatory Social Security payments).  Second, deferral extends the period in which the retirement funds can continue to grow tax-free.  Third, by delaying receipt of retirement income, the amount you receive annually once you do retire will likely increase.  The question is, “How can this be accomplished?” Click link to read more: Suffolk Lawyer_Nov

Reprinted with permission from The Suffolk Lawyer

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