IMQ Application #2: Delay RMDs

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  • Post last modified:September 1, 2023

 

Do you have clients who complain about having to take Required Minimum Distributions (RMDs)?  If any of these clients have younger spouses (in excess of 5 years), then we can help solve this issue.  With the use of an In Marriage QDRO®, we can roll 401k funds from a 70-year old participant to a 62 year old spouse, thereby delaying the RMDs for 8 years.  Imagine the tax savings and the additional growth on a large 401k.  Most importantly, imagine the look on your client’s face when you advise them you can solve their problem.

But don’t just survey your 70-year old clients.  Your primarily focus should be on your 60-65 year old clients who are less than 2 years away from retirement.  Upon retirement, many people rollover their large 401k or lump sum pension proceeds into a managed IRA.  Once that is done, then the participant can no longer transfer it to their much younger spouse.  This strategy can only be used with 401(k), 457, 403(b) plans as well as pensions.

Don’t want until your client retied to roll their funds into a diversified IRA.  Get the funds under your management today and delay future RMDs by years and years.  Contact us at your convenience to find out how.