People receive a lot of advice about accumulating money for retirement. Even though accumulating money is critical, it is only half of the planning process. And, what you don't know could hurt you and your family. To protect you and your family against unnecessary tax hits, you need to find out about the tax laws that can create havoc with your retirement plans. Although it is not widely known, the law provides five minimum required distribution options.
Many institutions offer only one or two for ease of administration.
Each option has a different impact on your retirement plan and a different tax consequence upon your death. Knowing these options can mean the difference between having an income that lasts as long as your retirement or being in retirement without an income from your plan. Knowing the options can mean the difference between passing a tax deferred inheritance or an immediate tax bill to your heirs. The answer is no. The law does not mandate that financial institutions offer all five options, nor does it require that the company inform the taxpayer that five options are available.