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I have had multiple small jobs how will i know what to deduct when I have to take a RMD?

VolvoGirl

Level 15

Do you have a IRA or 401K plan? How old are you? You have to take the first RMD Required Minimum Distribution when you turn 73. What do you mean deduct? There are no deductions for the RMD. RMD is a set amount you have to take out each year.

NCperson

Level 15

are you asking how much can you contribute to an traditional IRA now, and how to deduct that?

No RMD is required until you are 73 years old (75 years old if born in 1960 or later). Your Administrator will tell you what the RMD is when you are that age.

is that what you are asking?

CarolyntpowellAuthor

Level 1

Thks for responding I am 70 want to put a 401k money a less taxable location maybe a 629 for grandchildren

NCperson

Level 15

the tax consequences of 401k money and a 529 (not 629) are very different.

On 401k money, your income is reduced by the contribution so the tax is defered until you later withdraw the money. There are limits to the contribution based on your income.

On the 529 plan, you are contributing after-tax money. There is no deduction. However, when your grandchildren eventually withdraw the money for college, the earnings that grew over time are tax-free. The original contribution is withdrawn tax-free (because it was after tax money to begin with).

does that help?