Required Minimum Distributions.
“If you want the rainbow, you gotta put up with the rain.”
The famous country singer Dolly Parton was not talking about tax-deferred retirement accounts when she said it, however the gloom and doom of paying penalties to Uncle Sam, especially on a limited income in retirement is relative to a terribly timed rainstorm. If you are close to reaching the age of 72, or you have already reached that age, you will need to develop an understanding of Required Minimum Distributions (RMDs) and how they impact your overall financial plan so you can enjoy sunny skies in your golden years.
Our guide this month will provide a general forecast of what to expect regarding RMDs. We will explain timing your first withdrawal, how to calculate the total requirement you must meet, penalties you can expect if not done in a timely manner, how it works if you inherit an IRA and more. Ultimately, RMDs require a great deal of planning. Let’s get started!
The information in our Guides is of a general nature and is provided solely for informational purposes; it is not individualized and does not constitute investment advice or an offer to buy or sell any security, product, service or investment.