Retirement income sources
Transitioning into retirement is an exciting time in your journey. It’s also the time to make some important decisions and implement a retirement income strategy. You should focus on making decisions around what you can spend, withdrawals from your investments, and any gaps between spending and the income you have available.
Retirement income sources may include:
- IRAs
- 403(b)
- 457(b)
- 401(k) retirement accounts
- Other savings and investments
- Home equity
- Inheritances
- Part-time work
Living in retirement
Now that you are retired, it's time for you to start living your dream. But, there are a few things to keep in mind. Check out these videos for helpful information.
What do I need to know about taking my Required Minimum Distribution (RMD)?
What are RMDs and when do I need to take them?
A RMD is the minimum amount you must withdraw annually from you retirement account(s) to satisfy federal tax rules once you reach your required beginning date.
What can you do with your RMD?
Many people rely on RMDs to fund their retirement years. However, for others, it becomes a tax burden. Check out the calculators to help you determine what your RMD may be for this year.
Consider these options:
- Redirect the funds to create a potentially tax-free benefit for your heirs through life insurance.
- Redirect the funds to a non-qualified annuity which will defer taxation of future earnings until distributions are taken from the annuity.
- Donate your RMD to your favorite charity, church, or other non-profit tax-free (if eligible). If you don’t need the income to live on, this is a great way to get a tax break for your charitable gift.
This is only applicable for IRA owners, owners of other qualified retirement plans are not eligible for a qualified charitable distribution. You will have to transfer the money directly from the retirement account to the charity to meet the requirements.
If you are looking for alternatives for wealth transfer, these strategies can potentially help you create more wealth and tax efficiency for you and your loved ones or your favorite charity.
Your required date is:
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April 1 of the year following the year you turned 70 1/2 if you were born before 7/1/1949;
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72 if you were born on or after 7/1/1949 or in 1950;
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73 if born between 1951 and 1958;
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75 if born in 1960 or later.
If you were born in 1959, federal guidance is needed to determine if your Required Beginning Date is age 73 or 75.
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The information provided here is for general informational purposes only. The information should not be considered an individualized recommendation or personalized investment, tax or legal advice. Representatives of Horace Mann Investors Inc. (HMII) provide general information concerning retirement income planning. HMII and its representatives do not provide financial planning services.