Minnesota taxes your Required Minimum Distribution (RMD) because you have income from a Minnesota LLC. Here are some strategies to potentially reduce or avoid this tax:
- Qualified Charitable Distributions (QCDs): Transfer your RMD directly to a qualified charity. This can satisfy your RMD requirement without being included in your taxable income. Learn more
- Qualified Longevity Annuity Contract (QLAC): Transfer up to $200,000 of your retirement plan assets to a QLAC. This reduces the amount subject to RMDs and delays taxes until you start receiving annuity payments. Learn more
- Roth IRA Conversion: Convert your traditional IRA to a Roth IRA. Roth IRAs are not subject to RMDs, but note that the conversion itself is a taxable event. Learn more
