A 62-year-old can strategize to avoid required minimum distributions (RMDs) by transferring $70,000 yearly from a traditional 401(k) to a Roth IRA until they turn 75. Those born after January 1, 1960, can delay RMDs until 75, raising the potential for tax-free growth in Roth accounts. However, this strategy may increase tax liabilities due to withdrawals from traditional accounts. It is beneficial for retirement planning to consider financial advisor tools and potential growth in Roth accounts. The transfers ensure no RMDs while maximizing retirement wealth for heirs.
"If you have a traditional 401(k) or a traditional IRA, you must make RMDs when you turn 75. However, you don't have to make any withdrawals from a Roth retirement account if you don't want to."
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