Retirement Issue: Required Minimum Distributions
June 26, 2008 by Miranda Marquit
Filed under Consumer warning, Investing, Personal Finance, Retirement
One of the things to remember when you are saving for retirement is that once you reach age 70.5, you are required to take required minimum distributions (RMDs) each year from your retirement account.
Even if you don’t want the money.
If you don’t take the RMD, you will find yourself hit with an excise tax. So, while you do need to remember that you cannot withdraw from most tax-advantaged retirement plans until you are 59.5, you also need to plan for the fact that at some point you have to begin taking RMDs.
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Check out what others are saying about this post...[...] on all retirement accounts, check for required minimum distributions and other policies that may affect you now, and down the road. And make sure that rolling the 401k [...]