Retirement is a big deal! Many people get money from their retirement accounts, called RMDs (Required Minimum Distributions). But what if you don't need the money right away? There are some smart ways to use it!
- In-Kind Distribution: You can keep your money invested in stocks or funds instead of getting cash. This helps if your investments went down.
- Qualified Charitable Distribution (QCD): Give your RMD money directly to a charity! You don't pay taxes on this.
- Roth Conversion: Move your retirement money to a Roth IRA. This can have tax benefits later.
| Action | Benefit | Drawback |
|---|---|---|
| In-Kind | Keeps money invested | Still need to pay taxes |
| QCD | Tax-free charity donation | Only works for charitable giving |
| Roth Conversion | Potential tax advantages later | May have tax implications now |
