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February 16, 2009

Retirement Spending Phase



The period during which an individual spends the retirement savings that he/she accumulated to finance his/her retirement. In an ideal situation, the spending phase occurs after the individual has retired. However, in this era where an increasing number of individuals are experiencing working-retirements, the spending-phase and the accumulation phase sometimes occur concurrently.

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Additional Helpful Information

During the spending phase, an individual must take care to implement a strategic spending program, where a determination is made as to the most financial-effective order his/her assets should be spent. For instance, in which taxable (tax-deferred) , non-taxable and trax-free assets should be spend.


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Applicable RMD Age

Applicable RMD Age The first year for which an IRA owner or plan participant must begin to take RMDs from their tax-deferred retirement account. RMDs

SIMPLE 401(k) Plan

Definition A SIMPLE 401(k) plan is a 401(k) plan established by a small business for it’s employees. Earnings accrue on a tax-deferred basis and distributions

Required Minimum Distribution (RMD)

Definition The minimum amount that must be withdrawn from retirement accounts, including qualified plans, 403(b) accounts, 457(b) accounts or IRAs, each year.  For retirement account

Required beginning date (RBD)

Definition The date by which a retirement account owner must begin distributing required minimum distribution (RMD) amounts from a Traditional,  SEP or SIMPLE IRA, a

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