"A strong financial advisor can help you work out the details of a reinvestment plan."
"Reinvesting the money does not automatically result in double taxation. However, there's more to the story."
"You will owe taxes on any income generated from the new investments."
"Once you consider reinvesting RMD withdrawals, it's recommended to strategize for maximizing their impact."
When individuals reach the age of 73 (or 75 for those born in 1960 or later), they must withdraw required minimum distributions (RMDs) from pre-tax retirement accounts. While taxes are due on these withdrawals, reinvesting RMDs into other growth vehicles like stocks or real estate does not incur double taxation on the original withdrawal amount. However, any income generated from these investments will be subject to taxation. It's crucial to consult a financial advisor to optimize your reinvestment strategy.
Read at 24/7 Wall St.
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