Ask an Advisor: Should a 67-Year-Old With $218K in an IRA Start Withdrawals Early to Reduce RMD Taxes?

Core Insights - The article discusses strategies for managing retirement income, particularly focusing on Social Security benefits and Required Minimum Distributions (RMDs) [3][4][8] Retirement Income Strategies - Delaying Social Security benefits until age 70 can maximize monthly payments, with a potential increase from $1,400 at age 62 to $2,480 at age 70 for a full retirement benefit of $2,000 [5] - Reducing the amount subject to RMDs can minimize taxes and potentially avoid taxes on Social Security benefits [3][8] RMD Management - Individuals must start taking RMDs from traditional retirement accounts at age 73, calculated based on age, life expectancy, and account balance [8] - Converting a portion of traditional IRAs to Roth IRAs annually can help reduce future RMDs and allow for tax-free growth, although there may be tax implications for certain withdrawals [4]