Avoid a Required Minimum Distribution
Beginning at age 70.5, you are required to take a minimum distribution from retirement accounts such as 401k plans and traditional IRAs. But if you work just a few days into the new year, you will not have to take a minimum distribution of the funds in the retirement account associated with your current employer.
“For the right person, a good time to retire … is just a few days into the new year,” said Glenda K. Moehlenpah, a certified financial planner and investment advisor with Financial Bridges in Poway, Calif. “I have a client over age 70.5 who was planning on retiring on Dec. 31, and I convinced them to wait a week to delay the RMD from the current employer’s 401k plan.”
