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Required Minimum Distributions (RMDs) Don’t Have to Be in Cash, But…

Did you know that you may be allowed to take distributions from your IRA in-kind? That includes Required Minimum Distributions (RMDs).

Forget your RMD? Here’s What to Do

If you forgot your RMD, you need to take action as soon as you realize it. Not doing so can be very costly!

Required Minimum Distributions for IRAs and 401(k)s

There are differences in how Required Minimum Distributions are handled between an IRA and a 401(k). Here’s your primer.

RMDs in 2022 and beyond

New tables are available for calculating RMDs in 2022 and beyond. For most folks it’s an easy adjustment – a bit more involved for inherited IRAs.

Should You Take or Postpone Your First RMD?

The first year of RMD presents a planning opportunity. What should you think about as you consider the timing of this withdrawal?

Re-depositing RMD in 2020

The IRS recently produced guidance on re-depositing RMD for 2020, allowing flexibility after the passage of the CARES Act.

Required Minimum Distributions for 2020

How are required minimum distributions for 2020 changed by the CARES Act? There are a few “gotchas” to consider, depending on your situation.

RMDs From IRAs

IRA Required Minimium Distributions (RMDs from IRAs) are an important concept to understand. Getting the calculation wrong can cause penalties.

SECURE Act RMD Rules

With the passage of the SECURE Act, many changes have come into effect for retirement accounts. This article covers the SECURE Act RMD rules.

IRA Inheritance – Not Taking Timely Distributions

What happens when you forget to take the required distributions from an IRA inheritance?

Will TCJA Encourage QCD?

A byproduct of the Tax Cuts and Jobs Act may be a new appreciation for and much greater use of the QCD for charitable contributions from your IRA.

IRA RMD Reporting

IRA RMD reporting may be a mystery – it’s not that complicated though. And the IRS is watching your every IRA move, so never fear, they’ll know.

Remember Your RMD

It’s getting close to the end of the year and that means many individuals need to take their required minimum distributions (RMDs). It also means that there will be individuals who must begin taking their required minimum distributions as they will have reached the magic age of 70 ½. For those already taking RMDs, check with your advisor or asset custodian and find out the amount you need to take and how you can receive payments. In most cases, RMDs can be taken in an annual amount, or monthly via check or direct deposit. The specific RMD amount is based on the account balance as of December 31st the previous year and your age. You can use the RMD calculator found here to get an idea of your RMD amount. Additionally, be sure to account for any taxes you might owe. For 401k type plans, 20 percent will be withheld […]

Calculating your Required Minimum Distribution

Learn how to calculate your required minimum distribution for your IRA, 401k, 403b or other qualified retirement plan.

Remember Your 2016 RMD

It’s hard to believe that 2016 is coming closer to an end. For some individuals that are required to take required minimum distributions (RMDs) from their retirement plans, it may be a good idea to double check to make sure that happens. If it doesn’t the penalties are harsh. According to the IRS the penalty for not taking and RMD or not taking the full RMD is 50% of the amount not withdrawn.  This can lead to significant losses to a retiree that must take RMDs.  Generally, most financial planners and or custodians we’ll be able to help the individual and remind them that they have and RMD and how much that amount needs to be. If an individual finds themselves in the precarious position of having forgotten to take the RMD or did not take out enough, there is a remedy.  The IRS allows an individual to file form […]

Withdrawals from an IRA – death, disability, and 59 1/2

Three of the most common ways that you can withdraw funds from your IRA without penalty are: 1) reaching age 59½; 2) death; and 3) disability. Below is a brief review of each of these conditions for penalty-free withdrawal: Reaching Age 59½ When you reach age 59½, you can withdraw any amount from your IRA without penalty, for any reason. The only thing you have to remember is that you must pay ordinary income tax on the amount that you withdraw. This means that, once you have reached the date that is 6 months past your 59th birthday, you are free to make withdrawals from your IRA without penalty. You are not required to take distributions at this age (that happens at age 70½). Death Upon your death at any age, the beneficiaries of your account or your estate if you have not named a beneficiary, can take distributions from your IRA in […]

Age 72 RMD Rules

As an owner of an IRA or other qualified retirement plan (such as a 401k), when you reach age 72 (or 70½ under the pre-2020 rules) you are required to begin taking distributions from the account(s). There are several important factors about these distributions that could trip you up if you’re not careful. Listed below are some of the more important rules – but keep in mind that these RMD rules are only for the original owner of the account, not for a beneficiary of an inherited account. There is a different set of rules for inherited IRA RMDs. Required Minimum Distribution Rules Calculation of RMD – Determine your account balance from the end of the calendar year prior to the year for which the distribution is being calculated. Any additions or withdrawals after December 31 of the previous year are not included in this balance, even if an addition […]

Qualified Charitable Distributions for 2016

Individuals needing to take their required minimum distributions (RMD) for 2016 may consider having all or part of their RMD distributed as a Qualified Charitable Contribution (QCD). In order to qualify, the following rules must be met. The individual taking the QCD must be age 70 ½. The maximum allowed QCD is $100,000 per individual, annually. The QCD must come from an IRA. QCDs from 401(k)s, 403(b)s, 457(b)s, SEPs, SIMPLEs are not permitted. An individual may roll over an amount to their IRA and then made the QCD. The QCD is counted toward the individual’s RMD for the tax year. If the RMD was already taken, the QCD cannot be retroactively made. The QCD must be made directly to the charitable organization. Generally, the charity must be a public charity. The Protecting Americans from Tax Hikes (PATH) Act of 2015 made allowing QCDs from IRAs permanent. The tax benefit from […]

Charitable Contributions from Your IRA

Once the PATH Act (Protecting Americans Against Tax Hikes) is signed into law, at long last the ability to make a direct contribution from an IRA to a qualified charity will be permanent. For background – a Qualified Charitable Distribution (QCD) is when an individual (age 70 1/2 or older and subject to Required Minimum Distributions from his or her IRA) makes a distribution from his IRA directly to a qualified charity. This distribution can be used to satisfy the Required Minimum Distribution for the year. The distribution is limited to $100,000 for each year per individual. The real advantage of this option is that the owner of the IRA doesn’t have to claim the distribution as taxable income on his or her tax return. Any other distribution of pre-tax dollars typically must be claimed as ordinary income, increasing taxes because of the additional income. In addition, having the increased […]