Did you know that some people have to take money out of their retirement savings every year? It's called an RMD, or Required Minimum Distribution. If you don't need the money, what should you do with it? One idea is to put it into a Roth IRA.
- A Roth IRA is like a special savings account for retirement.
- Money taken out of a Roth IRA is tax-free!
- You can't directly put your RMD money into a Roth IRA, but there are ways around this.
- There are income limits to putting money in a Roth IRA.
| Thing | Number |
|---|---|
| Roth IRA contribution limit (under 50) | $7,000 |
| Roth IRA contribution limit (50+) | $8,000 |
| Income limit (single filer) | $146,000 |
| Income limit (joint filers) | $230,000 |
If you can't use a Roth IRA, there are other ways to handle your RMD money. Talk to a grown-up who knows about finances for help!
