IRAs

Understanding Required Minimum Distributions From IRAs

All assets in retirement plans must eventually be distributed to their owners or their beneficiaries (if they are deceased). The Internal Revenue Service (IRS) has structured the IRA rules so the advantages of tax deferral do not last forever. In this Letter we will look at “Required Minimum Distributions” (RMDs)—the amount that must be distributed each year for certain IRA owners. 

Understanding How IRAs Work

Individual Retirement Accounts are an important part of the investing landscape faced by Americans. They offer long term investors the potential for significant tax savings. In this Letter, I review the essential components of IRAs. Subsequent Letters on more complex IRA related topics will build upon this foundation.