Our goal at ABR Orlando is always to provide you with valuable information that can help you make better decision about your life choices and when we find a great resource, to present the information and introduce the firm or individual to you. We have a number of “White Papers” that you are free to request, please contact us at firstname.lastname@example.org to receive a copy; or contact Michael Eastham directly at michael@Fellowshipia.com.
Michael Eastham, CPA, PFS, is the founding principal of Fellowship Financial Group in Altamonte Springs, Florida. Mr. Eastham has been involved in financial services for over twenty five years. He is an active member of the American Institute of CPA’s and has earned their Personal Financial Specialist (PFS) designation. He has a BBA in Accounting from James Madison University, holds a Series 65 & 63 securities licenses as well as licenses in Insurance and Annuities.
Mr. Eastham served as Chairman of the Leadership Seminole Board of Directors and Treasurer of the Seminole County Regional Chamber of Commerce Board of Directors. He teaches Adult Education courses and Continuing Education for CPAs, Financial Planners, Insurance Professionals, Attorneys and the Florida Association of Real-tors. Mr. Eastham is a published author and is a recognized expert in the areas of financial strategies, retirement planning and asset protection. He also hosted the financial radio show, ‘Your Home, Your Money’ for over 8 years.
Fellowship Financial Group
393 Center Pointe Circle #1461
Altamonte Springs, FL 32701
White Paper – Understanding Required Minimum Distributions
Posted on September 4, 2017 by Fellowship Financial Group
The idea behind required minimum distributions, or RMDs, is that the government wants to give us a tax incentive to save for retirement – but they also want to make sure we don’t misuse it. So, if we’re in the 30% tax bracket and we put money into a tax deductible IRA or a 401k, each dollar we put in really only costs us 70 cents because it’s a before-tax contribution. So the government is helping us save and that’s nice. However, it’s also true that the government really wants this to be retirement money. In other words, they don’t want it to be money that you never spend or leave for your heirs. They want to make sure you pay tax on it eventually.
IRAs are one example of a use-specific plan, which the government loves. The 529 college tuition plan is another example; it’s extremely tax-efficient for the investor if used for college, but extremely tax-inefficient if used for retirement. Similarly, IRAs are designed to encourage people to save money for retirement, and if the money is used for that purpose then it’s taxed in a friendly manner. If it’s used for anything else, it’s not….