The Bear Market Could Lessen the Tax Impact of Your RMDs

In general, the bear market we have been experiencing since last June hasn’t been great for investors. But as the saying goes, every cloud has a silver lining, and the underwhelming performance of capital markets does have a few benefits for people living in retirement.

For people over the age of 72 and living in retirement, RMDs can come with a hefty tax hit, especially when it’s coupled with a market downturn like we experienced in 2022. But that downturn could also mean a smaller RMD amount for 2023—which, in turn, means a smaller tax bill.

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