Brian Bollinger, Simply Safe Dividends

Should I Use Dividends to Fund RMDs?

Tax-deferred retirement accounts like IRAs and 401(k)s serve as an essential part of most people’s long-term savings plans. While these are powerful tools, they also come with some tax complications after investors reach a certain age due to required minimum distributions, or RMDs. Let’s take a closer look at the complications posed by RMDs, as well as the suitability of using dividend stocks to meet these requirements.