I stand corrected.
Is there a better way to shield untaxed money ?
Eric in the Ozarks wrote: “Is there a better way to shield untaxed money ?”
The best way to shield income is to maximize your contributions to your 401k and to minimize your deductions. The RMD amounts are really very small. At age 71, the RMD is approximately 3.77% rising to almost 15% at age 99. While 15% may not seem small, the purpose of the 401k is to partially fund retirement. At age 99, there’s not much retirement yet.
Personally, I will never pay a RMD penalty. I intend to spend my 401k funds. I subscribe to the adage that “If you don’t travel first class, your grand kids will.”. Too bad for them.