IRAs let you get tax advantages throughout your career, but the lawmakers who created traditional IRAs didn’t want people to have the benefit of tax deferral forever. They therefore put in provisions that force retirees to take required minimum distributions once they turn 70 1/2. These RMDs apply to both traditional IRAs and workplace retirement accounts like 401(k)s, and if you don’t take out enough money, then you’ll owe a potential 50% penalty to the IRS on the amount you improperly left in the IRA.
Published in TZ Latest News 29 May, 2017 by The TZ Newswire Staff
What’s My Projected Required Minimum Distribution?
Published in TZ Latest News 29 May, 2017 by The TZ Newswire Staff
What’s My Projected Required Minimum Distribution?
IRAs let you get tax advantages throughout your career, but the lawmakers who created traditional IRAs didn’t want people to have the benefit of tax deferral forever. They therefore put in provisions that force retirees to take required minimum distributions once they turn 70 1/2. These RMDs apply to both traditional IRAs and workplace retirement accounts like 401(k)s, and if you don’t take out enough money, then you’ll owe a potential 50% penalty to the IRS on the amount you improperly left in the IRA.