Core Insights - Many Americans are not fully utilizing the tax advantages and flexibility offered by IRAs, which can significantly impact their retirement savings [1][2] Group 1: IRA Contribution Strategies - Individuals can make tax-deductible contributions up to $7,000 for 2025 ($7,500 in 2026) for those under age 50, and up to $8,000 ($8,600 in 2026) for those aged 50 and above, emphasizing the importance of early and consistent contributions [3] - Roth IRAs allow young adults, often in lower tax brackets, to build tax-free wealth, with contributions possible from parents or grandparents up to 100% of earned income or $7,000 for 2025 ($7,500 in 2026) [4][5] Group 2: Portfolio Management - A globally diversified IRA portfolio can help mitigate market volatility and achieve steady returns, allowing for tax-free reallocation of investments to maintain balance and align with financial goals [6] Group 3: Specialized IRA Options for Business Owners - Business owners can benefit from SEP and SIMPLE IRAs, which offer additional savings opportunities, and should consult financial professionals to understand the specific rules and advantages of these accounts [7]

Core Insights - The article discusses the importance of understanding Required Minimum Distributions (RMDs) for retirees, particularly those with pre-tax retirement accounts [3][4]. Group 1: RMD Overview - RMDs are mandatory withdrawals from pre-tax retirement accounts that must begin at age 73, ensuring that taxes are eventually paid on these funds [3][4]. - The IRS imposes strict rules regarding the timing and amount of RMDs, with significant penalties for non-compliance, including a 25% penalty on amounts not withdrawn in time [4]. Group 2: RMD Calculation - RMD calculations are based on the year-end balance of retirement accounts and the retiree's life expectancy, using the IRS Life Expectancy Table to determine the RMD factor [7]. - An example illustrates the calculation: a retiree with a $150,000 IRA balance at year-end would have an RMD of $5,882.35 for the following year, based on a factor of 25.5 [8]. Group 3: Withdrawal Flexibility - Retirees are not required to take their RMD in a single payment; they can opt for multiple withdrawals throughout the year and can withdraw more than the minimum if needed [9].

Run a small business with less than 100 employees? The Savings Incentive Match Plan for Employees (SIMPLE) IRA could be the right retirement savings solution for your workforce. Any questions? Ask away. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 1194784.5.0 ...