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Michael Kitces: 4 Ways To Mitigate The Impact Of RMDs

FYI: Required minimum distributions force retirement savers to take taxable withdrawals out of their retirement plans and traditional IRAs, but advisors have four useful tools to help mitigate the impacts.


  • This is curious. Here, the article suggests using QLACs (longevity insurance policies within IRAs) to defer RMDs. But earlier on his site, Kitces had a whole long article saying what a bad idea that was.

    Here's the question I just posted on Kitces site asking about this seeming contradiction. The page the link takes you to also contains the his full article. (site is
  • Possibly the "Trump effect".
  • Good grief! I tried reading the guy's article on QLACs with little success. Then I noticed the teaser at the top of the page. The guy's company will help me get Continuing Education credits for reading such stuff. Another career is within reach...
  • @BenWP: Definitely the "Trump effect".
  • The thumbnail version, through my lens (I'm not rereading it now):

    Longevity insurance is a useful product for people who want or need a guaranteed stream of income late in life. But like anything else, there ain't no free lunch here. You get something (the guarantee/peace of mind), you pay something (on average, you'd do a bit better on your own).

    If you don't need or want the policy, you're giving up value just to buy it. And the RMD deferral benefit isn't enough to make up for that.
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