October 17, 2016
RMD's; retiring early

What you should know about RMD’s

If you’re nearing retirement age, you may have questions about Required Minimum Distributions or RMDs. The rules surrounding RMDs are sometimes vague and unclear. However, you may face severe penalties for failing to the right withdrawal amount. That’s why it’s important to understand what’s required. Not only can you keep yourself out of trouble, but you can use your RMD  to continue reaching your financial goals. What Exactly Are Required Minimum Distributions? When a retirement account owner reaches 70½, they must start taking their Required Minimum Distribution each, if they haven’t already begun using the account. Basically, if you own a tax-deferred retirement account that you’ve contributed to over the years, the RMDs generally must be taken. Here are some of those type of  accounts: • Traditional IRAs • Roth 401(k) • 401(k), 403(b), and 457 plans • SEP IRAs • SARSEP IRAs • SIMPLE IRAs • Profit-sharing plans • Beneficiary IRAs It’s important to note, that Roth IRAs do not follow the same rules. Some retirement plan accounts vary the age at which you must begin RMDs. Be sure you talk with a qualified tax expert to be certain on the rules that apply to your situation. Calculating your RMD Couple your end of year balance […]