Required Minimum Distributions (RMDs) are the minimum amount you must withdraw annually from your retirement account upon reaching age 72*. RMDs apply to most retirement accounts, including IRAs, SEP IRAs, SIMPLE IRAs, 401(k), Roth 401(k), 403(b), Roth 403(b) and Deferred Compensation/457 plans. One notable exception is the Roth IRA, to which RMDs do not apply.
RMDs are calculated by dividing your (prior year) December 31 account balance by a life expectancy factor that the IRS publishes. That amount must be withdrawn by December 31st of the current year. RMDs not taken by the deadline may be subject to a tax penalty equal to 50% of the RMD amount.
Our team works hard to ensure all RMDs are taken in a timely manner. We are currently reviewing our records to make sure no one was missed. If you are contacted by Kristin, please reply promptly to complete your RMD before the deadline.
*If you reached age 70½ prior to January 1, 2020, then your RMDs began the year you attained age 70½.