I grew up in a small village where not much happened. There was one church, a small store attached to the store owner’s home and a post office attached to the post mistresses home. We had very few streets and no street names. It was actually very idyllic for a child. But we never celebrated the 4th of July in my town. It wasn’t until I met the man who would be my future husband that I got to see what the 4th of July was all about in small town America.
Are you facing the situation where you have to start taking required minimum distributions from your qualified accounts but you don’t need the income for retirement? If this is the case, congratulations to you. You planned and saved well. And now you are faced with a financially comfortable retirement. But as age 70 ½ comes closer, you know the Internal Revenue Service is going to require you to start taking distributions from your qualified accounts, whether you need the income or not. What to do?
If you have a Roth IRA, you know the benefits of this account. You can take distributions from it over your lifetime without paying any tax on the interest accumulated as long the distributions are considered to be “qualified.” This means that you must have had your Roth IRA for at least five years and be at least age 59 ½ when you begin to take distributions. But you also are not required to take money from the account which means you do not have to start taking required minimum distributions when you turn age 70 ½. If you don’t need the money in retirement, you can let it continue to grow, leaving it for your named beneficiaries.
Yup. I am one of those people—an unabashed animal lover.
But I’m certainly not alone. According to the American Pet Products Association (APPA), Americans spent $58.04 billion (yes, I said billion) on their pets in 2014. While it isn’t too surprising that $22.26 billion was spent on food, more than $28 billion was spent on vet care, supplies and OTC medicine. Clearly it is important to us to keep our pet friends happy and healthy.