You may have an RMD obligation coming up this year! Here’s a sneak peek inside our whitepaper, Your Guide to Required Minimum Distributions (RMDs).

What is an RMD?

Your required minimum distribution is the minimum amount you must withdraw from your account each year after you reach a certain age. This applies to Individual Retirement Accounts (IRAs), SIMPLE IRAs, and SEP IRAs. Roth IRAs do not require withdrawals until after the death of the account owner.

Are RMDs included in your taxable income?

Your withdrawals will be included in your taxable income except for any part that was taxed before going into the account (after-tax contributions) or that can be received tax-free (such as qualified distributions from designated Roth accounts).

RMDs are generally subject to federal and (if applicable) state income taxes. However, to the extent an RMD is a return of basis or a qualified distribution from a Roth IRA, it’s tax free.

Download our whitepaper, Your Guide to Required Minimum Distributions (RMDs) for more information about how much you need to withdraw, penalties for missing the deadline and more.

Contact us to take the guesswork out of taking RMDs and for more details on what’s changed under recent legislation. We can help you comply with the rules and minimize any adverse tax consequences.