"This post describes tax-related retirement plan decisions and tax impacts during working years, financial gap years (age 59½ to required minimum distribution (RMD) age), and after RMDs begin. Since RMDs are taxed as ordinary income, strategies to mitigate their tax impact are also described as well as related topics such as portfolio rebalancing, rollovers, and account withdrawal methods (e.g., Rule of 55 and the 72(t) rule). Also included is a summary of research about RMDs, which are often used as a de facto retirement savings income withdrawal strategy by older adults, and the impact of asset allocation on the volatility of RMDs. It concludes with three 'need to know' facts, and six take-away action steps."  MORE >>