Starting at age 70 people with money in qualified retirement accounts (Traditional IRA, 401(k), etc.) have to start withdrawing and paying taxes on required minimum distributions (RMDs) from these accounts based on life expectancy. In this video, Adriane Berg, founder of Generation Bold and author of Bottom Line’s Aging for Beginners blog, offers three ways to minimize the RMD and thus pay less tax. The first of these strategies is to convert some of the money in retirement accounts to a Roth IRA, which has no minimum distribution. The second is to open a special account called a QLAC, which allows you to set aside up to $125,000 and not pay taxes on it until age 85. The third strategy is called a three-pay strategy, which allows you to borrow funds for tax prepayment from an insurance company. All three options offer the opportunity to reduce the amount you will pay in taxes, so it is worth consulting a financial professional or doing the research to determine which might be right for you.

For more great tips from Adriane Berg, check out her Bottom Line blog “Aging for Beginners,” visit her website, or purchase her most recent book How Not to Go Broke at 102.