5 Dividend Stocks Worthy of Your RMD

If you don't need your required payout, consider reinvesting it

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5 Dividend Stocks Worthy of Your RMD

PiggyBank185 5 Dividend Stocks Worthy of Your RMDIn addition to the fiscal cliff, special dividends and, of course, holiday shopping, retirement investors age 70 1/2 and older need to think about at least one more financial event: taking their required IRA distribution by year-end.

Remember that IRS rules pertaining to IRA accounts require distributions based on a somewhat complicated table, and not adhering to the rules can be punitive — namely, the IRS can penalize (tax) you 50% of the required minimum distribution (RMD).

Of course, the question then becomes: Now that you have the money from the RMD, what do you do with it (if you don’t want/need to spend it right away)?

Well, this situation came up just last week with a reader (let’s call her “Mom”), who said she put her distribution money into a dividend stock through a separate non-IRA account.

I love the idea — it’s certainly better than just dumping it into a bank account paying just more than nothing, or a CD that would tie her money up for 18 months at an interest rate of … well, just more than nothing. So what are some dividend stocks you might consider piling your RMD into? Here are five ideas:

 
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Article printed from InvestorPlace Media, http://investorplace.com/2012/12/4-dividend-stocks-for-your-ira-distribution-money-nwl-flo-glw-bgg-leg/.

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