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Should I rush to take my RMD while the S&P 500 is down, or wait until the end of the year like normal?

13 April 2025
in World
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Should I rush to take my RMD while the S&P 500 is down, or wait until the end of the year like normal?
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Summary

In a volatile market, retirees facing required minimum distributions (RMDs) must carefully consider timing their withdrawals, as rushing to take funds now may result in selling investments at a loss. Unlike Roth conversions, which benefit from tax-free growth, RMDs incur taxes on withdrawn funds, locking in losses and subjecting future growth to taxation. Financial planners recommend using specific assets for RMDs to minimize losses and emphasize the importance of not viewing a portfolio as a single entity, highlighting the need for strategic withdrawal planning.

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Tags: Accountnormalordinary incomerequired minimum distributionsretirementRMDRob WilliamsRoth conversionsRushStock Marketwaitwithdrawalyear
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