{"type":"video","version":"1.0","html":"<iframe src=\"https://www.loom.com/embed/ae0f2124ba964c42990cb8e2444fa70a\" frameborder=\"0\" width=\"1366\" height=\"1024\" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>","height":1024,"width":1366,"provider_name":"Loom","provider_url":"https://www.loom.com","thumbnail_height":1024,"thumbnail_width":1366,"thumbnail_url":"https://cdn.loom.com/sessions/thumbnails/ae0f2124ba964c42990cb8e2444fa70a-00001.gif","duration":346.14400000000006,"title":"The RMD Tax Trap: What You Need to Know 🚨","description":"Hey there, it's Carl Wolston. In this Thrive in 5 Newsletter, I want to talk to you about the RMD Tax Trap. RMD stands for Required Minimum Distributions, and it's something you should have on your radar about retirement. If you don't address this, it could create major tax liability for some individuals and families during your retirement years. The government is not going to let you get out of life without taxing you on your tax-deferred accounts, meaning 401Ks, IRAs, 457s, 403Bs, any type of accounts that have not yet been taxed. By the age of 73, they're gonna have you start to pay a percent of that, and it'll go into your ordinary income where you'll be taxed depending on your tax bracket. It starts at just under 4% of the balance, and the percent increases each year. There's also a 25% penalty if you don't take it when you should have. In this video, I'll show you a quick illustration of how this works and how your liability can increase faster than the amount you're pulling out. I'll also talk about the widow's tax trap and how you can avoid it. Generally, there's a wonderful window between age 60 and 73 when you can really take advantage of looking proactively ahead. I'll share some smart proactive ways to reduce your long-term tax burden, such as Roth conversions and tax bracket planning. So, if you have tax-deferred accounts, you need a plan pro-active to look forward at taxes."}