RMD Rules Have Changed – Here’s Why That’s Important- Season 3: Episode 4
So maybe you retired at age 65, and maybe you set yourself up so that you don’t have to think too much about your financial strategy, and then — boom! You hit age 72, and you have to deal with required minimum distributions (RMDs) from your IRAs.
The rules for taking required withdrawals have always been somewhat convoluted, but as of 2020, they’ve changed quite a bit; and if you inherit an IRA, they’re even more complicated. Not only that, but if you miss all or part of your RMD when you were supposed to take one, the penalty is 50% of the missed amount!
Knowing what to do and how to do it is important. On this week’s episode of Managing Your Financial Future, you’ll get the details from Johnny Dean and “Professor” Rick Plum on what’s changed for 2020, what has not changed, and why it may be especially important to have guidance from a financial professional when dealing with inherited IRAs.
IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.
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