At 72, you may find yourself one year away from required minimum distributions (RMDs), but that narrow window could still offer an opportunity to reduce future mandatory withdrawals. Converting part of a traditional individual retirement account (IRA) to a Roth IRA or taking a voluntary distribution before they begin may help lower your balance.
The RMD Tax Trap That Can Leave You Paying More
RMDs generally begin at 73, and the size of the withdrawal depends largely on how much remains in your IRA. That can create a tax problem when the distribution lands on top of Social Security, pension payments, investment earnings and other income you…
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