Required Minimum Distributions (RMD)

 Who must take a RDM?

• Owners of a Traditional IRA who are over the age of 70 1/2
• Everyone (no matter your age) who owns an Inherited IRA Account

 When must I start taking RDM due to my age?

• The first required minimum distribution must occur by April 1st of the year after you reach age 70 ½. Example: If your birthday is in March, you will turn 70 ½ in September. Hence your RDM must be completed by April 1st of the following year, (of course you may take a distribution in the current year.)

Is there a penalty for not taking a RDM

• Yes, 50% of the amount that should have been distributed

What if I forgot to take last year’s RDM?

• Don’t delay: Take the distribution now and file an IRS Form 5329. Form 5329 allows you to ask for grace form paying the penalty if you have a good reason for not taking the distribution in a timely manner. Example Serious Illness.

 

For more information on Self Directed IRAs call toll free 888-795-7950

• To visit our Home Page go to Self Directed IRA
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• To see what our client say go to Testimonials
• Submitted by Dennis Blitz, The IRA Club

 

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