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Investing Specialists

How RMDs Can Upgrade Your Portfolio

Christine Benz

Affluent investors love to hate their RMDs--the required minimum distributions they must take from their Traditional IRA and 401(k)s by the end of each year after they turn age 70 1/2.

They complain that their RMDs push them into a higher tax bracket and muck with their planned withdrawal rates. They wonder about how to reinvest their unwanted, unneeded distributions, as well as how to avoid RMDs in the first place.