Imagine discovering that the way you take your Required Minimum Distribution (RMD)
could influence your taxes, reinvestment strategy, and long-term retirement plan.
Each year, Americans over age 73 are required to withdraw more than $35 billion from their retirement accounts. Yet many retirees don’t realize that how they take their RMD may affect their overall financial strategy.
Most people take their RMD in cash because it’s the default—and often the only option their advisor mentions. However, withdrawing in cash may increase taxable income, reduce the amount that remains invested, and expose investors to market-timing challenges.
There's Another IRS-Approved Option
Many retirees are unaware that RMDs can also be taken “in-kind,” meaning you can receive certain assets—such as physical gold or silver—instead of taking the distribution in cash.
Taking an RMD in-kind does not eliminate taxes, but for some investors it may:
- Help maintain their long-term allocation
- Reduce the impact of selling assets during market volatility, and
- Support diversification, depending on their overall plan
This IRS-allowed method is fully legitimate, though not commonly highlighted in traditional planning conversations.
Before Taking Your Next RMD, Consider:
- Are you aware of all the IRS-approved ways to satisfy your distribution?
- Could an in-kind RMD better support your diversification goals?
- Are you unintentionally selling assets at a time that may not align with your strategy?
Understanding your options is essential.
This guide breaks down the differences so you can make an informed decision before taking your next withdrawal.
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