- RMD Penalty Waiver Letter Sample
Required minimum distributions (RMDs) are the mandatory withdrawals that you take from your tax-deferred retirement accounts each year. The IRS requires these distributions to occur, even during rocky periods of life, and levies a penalty if you don’t withdraw the prescribed amount each year. Fortunately, if you fail to take an RMD, you can avoid… read more…
- How to Calculate Required Minimum Distribution (RMD)
Required minimum distributions (RMDs) are withdrawals you have to make from most retirement plans (excluding Roth IRAs). The age for withdrawing from retirement accounts was increased in 2020 to 72 from 70.5. The SECURE 2.0 Act, though, raised the age for… read more…
- IRS Waives Missed RMD Penalty for Some Inherited IRAs
The IRS announced late Friday that there will be no excise tax penalty on missed required minimum distributions (RMDs) of inherited IRAs for tax years 2021 and 2022. Final rules of what amounts to an unexpected tax reprieve for some… read more…
- 4 Strategies to Limit RMDs
Saving for retirement is hard. It takes discipline, intelligence and likely a little bit of luck. You have to put money into your retirement fund consistently, make smart investment choices and hope that none of them end up going sideways.… read more…
- 84% of Retirees Are Making This RMD Mistake
Though retirees are only required to take a certain portion of their retirement savings out as distributions each year, a study from JPMorgan Chase shows that there is likely good reason to take out more. A withdrawal approach based solely on… read more…
- 6 Strategies to Reduce Your RMDs
Individual retirement accounts (IRAs), 401(k)s and other workplace plans can help you build wealth for the future while enjoying some tax benefits. However, once you retire, you’ll need to account for required minimum distributions (RMDs). The IRS requires you to begin taking distributions from certain retirement accounts beginning at age 73 (72 prior to 2023).… read more…
- Is an RMD Needed If You’re Still Working?
If you contribute to a tax-advantaged retirement account at work or a traditional IRA, Required Minimum Distributions (RMDs) are something you’ll need to factor into your financial plan. These distributions are minimum amounts you’re required to withdraw from your retirement accounts once you reach age 72. You might be wondering whether you have to take… read more…
- IRS May Close This RMD Loophole
Most Americans have at least heard of a 401(k) plan, but there is another tax-advantaged workplace retirement plan out there — the 403(b). A 403(b) operates similarly to a 401(k), but is generally only available to public sector employees and some non-profit workers — including teachers, university employees and religious leaders. While in many ways… read more…
- Is It Better to Take Your RMD Monthly or Annually?
After a certain age, you must begin to take minimum withdrawals from your tax-advantaged retirement accounts. The exact amount of this required minimum distribution or RMD is determined by a number of factors, including your age and the amount you… read more…
- Secure 2.0 Act: How Your RMDs Might Be Impacted
The Securing a Strong Retirement Act of 2022, dubbed SECURE 2.0 Act, will replace the current age for required minimum distributions (RMDs) with a sliding scale that would enable anybody who turns 74 after December 31, 2032 to delay RMDs… read more…
- Good News for Retirees: RMD Formula Changing for First Time in Decades
The IRS has good news for retirees starting in 2022: you can now keep more money in your tax-deferred retirement accounts thanks to lower required minimum distributions (RMDs). For the first time in 20 years, the Internal Revenue Service has updated its actuarial tables that dictate how much a person is required to withdraw from… read more…
- All About Required Minimum Distributions
If you imagined spending your retirement only pulling from your retirement accounts when you need them, you’ll unfortunately be disappointed. The IRS wants you to start taking money out of your retirement accounts beginning at age 72 or 73. This… read more…
- 6 Tips for Understanding Required Minimum Distribution Rules
Mapping out your retirement strategy involves more than just tossing money into a tax-advantaged account; you also have to pay attention to what the guidelines are for pulling the cash back out. Certain types of qualified savings plans, including 401(k)s… read more…