What is a Required Minimum Distribution (RMD)?
A Required Minimum Distribution, or RMD, is the amount you’re required by the IRS to withdraw from your tax-deferred accounts, like a Traditional IRA or 401(k).
Before April 1st of the following year in which you reached 70 1/2 or retire (whichever is later), you must begin to take the required minimum distribution.
To calculate your RMD, it is easiest to use an RMD Calculator like this one provided by Schwab, or FINRA, as opposed to try to figure out using the IRS RMD Worksheets. Also, your investment broker may provide an automatic calculation for you.
The easiest way to get started saving for retirement is to use your employer’s 401(k) plan. A 401(k) is a retirement savings plan sponsored by your employer. It lets you save and invest a portion of your paycheck before income taxes are taken out. The specific rules and investment options vary from plan to plan, … Read more
It can be hard to keep track of all the various financial tasks you need to do during a given year. Today I thought I would share a list so you can map it out on whatever calendar application you like to use. Here are some of the key financial tasks that should be done … Read more
There is a limit which is set by the IRS every year for both Roth and Traditional IRA accounts. The current IRA contribution limits for those under 50 is $5,000 and for those over 50 it is $6,000. This allows for what is called a catch up. What is important in making the decision between … Read more