top of page
Search

Avoid Required Minimum Distribution Mistakes

  • Writer: Melissa
    Melissa
  • Oct 29, 2019
  • 2 min read

If you’re approaching retirement or already retired, you may have a traditional IRA, SIMPLE IRA, or SEP. If you do, at a specific age you must take a minimum distribution. This minimum distribution is required by the government when you reach the age of 70 ½. It is not only done one time but this minimum distribution is required on a yearly basis. The required minimum distribution is important and must be followed to keep you from getting fines and penalties from the IRS. You are allowed to withdraw more than the required minimum distribution if you choose but you must withdraw from each account individually.

How The Required Minimum Distribution Is Calculated

When calculating a required minimum distribution for any given year, it is always wise to confirm on the Internal Revenue Services website that you are using the latest calculation worksheets. If you are currently still in the workforce at 70 ½ then on some occasions the plan will allow you to only perform a required minimum distribution after you retire. If you have a Roth IRA, a withdrawal is not required until the owner of the IRA dies. The main purpose of the required minimum distribution is to make sure that these individuals with these retirement accounts are not avoiding paying taxes.

The Mistakes That Should Be Avoided When It Comes To RMD

There are mistakes that individuals with retirement accounts should avoid because it can lead to expensive penalties and fines with the IRS. A common mistakes made is not remembering that their RMD withdrawal is due! Some retirees that need to take RMD’s also make the mistake of not having a plan in place for the required withdrawals over the long term, accidentally withdrawing the wrong amount.

“Even A Small Miscalculation Can Result In Big Fines and Penalties”

The Consequences of Making Mistakes With RMD

There can be consequences to mistakes made in regards to RMD’s. If you forget to make a payment or make a mistake the fine is 50 percent of the amount that should have been withdrawn plus the income tax that is owed. The can be reason enough to consult a financial professional. A financial professional can assist you in calculating the right amount to withdrawal without mistakes where penalties will apply. If you make long term plans when it comes to making your RMD, a professional can assist in minimizing your taxes.

There is a lot to think about when it comes to planning for retirement. We are here to help you to and through your golden years.

 
 
 

Kommentare


Follow

  • LinkedIn
  • facebook

Contact

Office: 240-403-2677

Address

9701 Apollo Drive, Suite 443
Upper Marlboro, MD 20774

We at EViE Financial are committed to promoting fairness, kindness, and equality in everyt
We at EViE Financial are committed to promoting fairness, kindness, and equality in everything we do. We stand strong with our LGBTQIA+ community members and allies.

©2022 by EViE Financial Group.

This website is for informational purposes only and does not constitute investment advice nor a solicitation to buy or sell any security or engage in a particular investment strategy. EViE Financial Group provides advisory services through Rossby Financial LLC, a Registered Investment Adviser with the U.S. Securities and Exchange Commission. Information contained herein is provided by sources deemed to be reliable; however, accuracy and completeness cannot be guaranteed. All investing involves risk, including the possible loss of principal. Results are not guaranteed, as past performance does not indicate future results. Rossby Financial LLC and its affiliates do not provide tax or legal advice. 

Disclosures: https://www.rossbyfinancial.com/disclosure

 

Securities offered by Registered Representatives through Private Client Services, Member FINRA/ SIPC. Advisory products and services offered by Investment Advisory Representatives through Rossby Financial LLC, a Registered Investment Advisor. EViE Financial Group, Rossby Financial, LLC, and Private Client Services are unaffiliated entities. EViE Financial, Rossby Financial and Private Client Services do not offer tax or legal advice. Please consult a professional regarding your specific situation.

Our advisors are securities registered in the following states: AZ, CT, DC, FL, GA, HI, ID, IN, MD, MI, NC, NY, PA, SC, VA, and WI
Our advisors offer advisory products in the following states: AZ, CA, CO, CT, DC, FL, GA, HI, ID, IL, IN, MA, MD, MI, MN, NC, NJ, NY, OH, PA, SC, TN, TX, VA, and WA

bottom of page