Financial Advisor Required Minimum Distribution Guide
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Create a Required Minimum Distribution planning guide for client reaching RMD age.

Client details (placeholders):
- Current age: [72-75 range]
- RMD start year: [year]
- IRA balance: $[amount]
- 401k balance: $[amount if applicable]
- Other retirement accounts: $[amount]
- Current income: $[from other sources]
- Tax bracket: [%]

RMD PLANNING GUIDE

1. RMD BASICS
   - Required starting age: [73 for those born 1951-1959 — verify current law]
   - Deadline: December 31 each year (first RMD by April 1 of following year)
   - Accounts affected: traditional IRA/401k/403b/SEP IRA/SIMPLE IRA
   - Roth IRA: NO RMDs during owner's lifetime
   - Penalty for missing: [verify current penalty — was 50% now 25%]

2. HOW RMD IS CALCULATED
   - Formula: Account balance / Life expectancy factor
   - Balance: December 31 of prior year
   - Life expectancy factor: IRS Uniform Lifetime Table
   - Example at age 73: Factor = 26.5
     $500,000 / 26.5 = $18,868 RMD

3. YOUR ESTIMATED RMD SCHEDULE

   Current year RMD:
   - IRA balance: $[]
   - Life expectancy factor: []
   - Required distribution: $[]

   Projected future RMDs:
   | Age | Est. Balance | Factor | Est. RMD |
   | 73 | $[] | 26.5 | $[] |
   | 75 | $[] | 24.6 | $[] |
   | 80 | $[] | 20.2 | $[] |

4. TAX IMPACT
   - RMDs are ordinary income
   - Added to current income: $[]
   - Potential bracket impact: [describe]
   - Medicare IRMAA: [threshold — may increase premiums]
   - State tax: [if applicable]

5. STRATEGIES TO MANAGE RMDs

   QUALIFIED CHARITABLE DISTRIBUTION (QCD)
   - Give up to $[limit — verify current] directly from IRA to charity
   - Not included in income — reduces tax
   - Satisfies RMD
   - Must be 70.5 or older

   ROTH CONVERSION
   - Convert before RMDs begin
   - Reduces future RMD amounts
   - Pay tax now at potentially lower rate

   REINVESTMENT
   - If not needed for income — reinvest in taxable account
   - Consider tax-efficient investments

6. DISTRIBUTION LOGISTICS
   - Single IRA: [take from that account]
   - Multiple IRAs: [can aggregate — take from one]
   - 401k: [must take separately from each]
   - Timing: [spread throughout year or year-end]
   - Withholding: [consider for tax planning]

Note: RMD rules change. Verify with current IRS publications. Tax advice requires licensed CPA.

Source: https://promptzyo.com/prompt/financial-advisor-required-minimum-distribution-guide