Phillip Cannella News: Phil Cannella Explains Required Minimum Distribution


Phil Cannella – Phillip Cannella News: Phil Cannella doesn’t just provide financial advice, he provides specialized advice for American retirees to ensure that they secure their nest egg for their entire life. One of the strategies he uses in working with his clients is helping them avoid the high taxation that can occur as a result of the Required Minimum Distribution (RMD).

 

But what exactly is the RMD? By April 1st of the year after you reach age 70½, federal tax law states that you must take a Required Minimum Distribution (RMD). That means you are being forced to withdraw money from your retirement accounts whether you need it or not. It also means you will pay income tax on every dollar of those distributions. What Phil Cannella further points out is that you’ll actually be taxed twice: first when the money is forcibly drawn from your account, and second when your RMD is added to your total income and reported on your tax return.

 

You’ll always hear Phil Cannella preaching that retirees use a financial advisor who specializes in retirement, and for good reason. What most financial advisors who don’t specialize in the retirement years don’t know, and therefore don’t advise their clients, is that there are ways to bypass the Required Minimum Distribution law. Learn how, in Phil Cannella’s book, Crash Proof Retirement: The Planning Isn’t Over.