Jeff Dixon, MBA, CISP, SDIP
REQUIRED MINIMUM DISTRIBUTIONS (RMD’s):
At age 72, you need to take “required minimum distributions” from your retirement accounts. The deadline is December 31st of each calendar year. You will find a worksheet prepared by the IRS HERE.
Wait, is that new?
The target date used to be age 70, however this was changed by Congress in 2019.
If you do not take the mandatory distribution by the end of the year, you face a 50% penalty of the amount that should have been taken. Tax laws are complex. Working with a competent tax authority to compute the required amount can be in your own best interests.
Not like last year
You could avoid taking an RMD in 2020 but that has not been extended to 2021 at this point thanks to an act of Congress.
If you were already taking an RMD when you turned 70, you needed to continue to take the distributions.
How do I take an RMD?
Taking an RMD is a “withdrawal”. You will find a withdrawal tab on your dashboard when you log into your account. Complete that online form and then revisit your account to ensure funds have been disbursed.
Because taking a withdrawal from your account is a taxable event, we will issue a 1099 to you for that tax year to provide to your tax advisor. You will find a RMD worksheet to calculate your Required Minimum Distribution from your own IRAs, including SEP IRAs and SIMPLE IRAs HERE.
Ask your questions about taking your RMD for 2021 by clicking HERE
Have question? We are always happy to help you and answer questions about using your Self-Directed IRA. You can also find information on our website. Feel free to call us at 714-831-1866 or email us at info@uDirectIRA.com.
