Many of you may be wondering why we are so firm of completing RMD’s in what may seem like “Early” Calendar Fashion…
This year marks the first year of full force RMD’s since the new age 72 (recall it was 70.5 a couple of years ago)
Let’s not forget the following headline from just a few months ago too!
From the IRS statement on RMD’s here:
Consequence for failing to take required minimum distributions
If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required.
- To report the excise tax, you may have to file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
- See the Form 5329 instructionsPDF for additional information about this tax.
Financial Institutions are Mandating an Early Completion or Going Best Efforts
In addition to the full force of participants … Many institutions are Mandating a December 1 completion or it will be “A Best Efforts Basis” …
Bottom line, the consequences are too large in delaying your RMD – if you have not, take them NOW before the rush ….
Have a Great “RMD’s taken now” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
