RMDs Archives - DR News - News, Retirement, Finance

Hospitalized last year and missed RMDs: How to remedy the oversight

New York, NY – Many individuals may find themselves in a situation where they were unable to take their Required Minimum Distribution (RMD) from their retirement account, particularly due to unforeseen circumstances such as a hospitalization. Fortunately, there are options available to rectify this issue and avoid any potential penalties from the IRS. One possible solution is to take the missed RMD as soon as possible and report the situation to the IRS. Providing a …

How Secure 2.0 Act is Changing Your Retirement NOW

The landscape of retirement planning is witnessing significant changes as the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act comes into force. The goal of the act is to enhance retirement savings for Americans, introducing new rules and opportunities for individuals and employers. Here are some key changes taking place now: Age for RMDs One of the key modifications under the SECURE 2.0 Act is the adjustment to the age at which retirement …

RMDs: What You Need to Know and How to Minimize Their Impact

As you approach retirement, it’s essential to understand how required minimum distributions (RMDs) can influence your financial landscape. Recent changes in legislation have adjusted the age for mandatory RMDs from retirement accounts like 401(k)s and IRAs to 73, with plans to raise it to 75 by 2033. To illustrate, if you’re 73 with a $2 million balance in your 401(k), the IRS’s life expectancy table for 2024 indicates a factor of 26.5. This means your …

Could You Lose Out on Catch-Up Contributions Next Year? Find Out Now!

The SECURE 2.0 Act, introduced last year, significantly altered retirement account regulations. Some modifications have already been implemented, leading to confusion, especially among older individuals trying to navigate essential retirement planning decisions, like when to take required minimum distributions (RMDs). A particular area of concern is the forthcoming adjustments to the rules surrounding catch-up contributions for 401(k) plans. Initially set to be effective in 2024, these changes will necessitate catch-up contributions for those with higher …

Understanding Non-Deductible IRAs and Their Distinctions from Roth or Traditional IRAs

Is it logical to finance an individual retirement account (IRA) when it doesn’t offer a tax deduction? Many individuals who aren’t eligible to fully finance a deductible IRA or Roth IRA miss out on this straightforward opportunity to set aside additional retirement funds that can mature without tax implications. Unlike a 401(k) or similar salary reduction plan, you can contribute to a non-deductible IRA until the tax filing deadline. Understanding Non-deductible IRAs During a tax …

Are You Falling Into A Hidden Tax Trap By Delaying RMDs?

Congress has recently expanded a tax trap that affects individuals with traditional IRA and 401(k) accounts by enacting the SECURE Act 2.0 in December 2024. This law has pushed back the age at which required minimum distributions (RMDs) must begin, delaying it to age 73 starting from January 1, 2023. Subsequently, the starting age will increase to 75 starting from January 1, 2033. If you already take RMDs before 2023, these changes do not impact …

How Your Retirement Account Benefits From SECURE 2.0

By 2022’s close, SECURE 2.0 had been formally enacted as law. These laws will affect retirement savings for workers of all ages. The second edition of the SECURE Act (Setting Every Community Up for Retirement Enhancement) aims to build on the successes of the first. Find out more about SECURE 2.0’s impact on retirement planning.

How to Strategically Avoid RMDs: Converting a $1.5 Million IRA into a Roth Account at 62

Atlanta, Georgia – A 62-year-old individual who has amassed $1.5 million in a traditional IRA may be considering the option of converting $150,000 per year into a Roth IRA in order to avoid required minimum distributions (RMDs), which are mandated annual withdrawals that can increase taxes in retirement. RMDs are required by the IRS from IRAs, 401(k)s, and other tax-deferred retirement accounts, typically starting at the age of 73. However, strategic Roth conversions can help …

New IRS Rule Affects Required Minimum Distributions

The government knows Americans live longer than they did a decade ago, which will be reflected in the required withdrawal amounts from retirement funds at various ages beginning in 2022.