Broker Check

Your RMD deadline is December 31!

October 19, 2022

The time to take RMDs is upon us and since there are strategic ways to ensure that you can save more of your hard-earned money and enable it to continue to grow, we wanted to help you start the process now instead of rushing to get them done last minute.

Here are a few basic RMD December 31 deadline reminders to keep in mind: 

Accounts Subject to RMDs - RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, Rollover IRAs, most 401(k) and 403(b) plans and most small business accounts. 

RMD Notifications and Amounts - The financial institution that held your retirement account as of December 31 of last year should have notified you of the RMDs due for this year. If they didn’t compute the RMD amounts, they will do so upon your request. 

April 1 Deadline Extension - Only first-year RMDs can be delayed. If you delay your first RMD until April 1 of the year after you turn 72, you’re then required to take two RMDs that year (April 1 and December 31).

Penalties - If you don’t take any distributions by December 31 or if you make an error on your distributions so it doesn’t fulfill the requirements, you’re subject to a penalty of 50% of the shortfall.

With the RMD deadline being at the tail-end of the holiday season, December 31 will be here before we know it. Let’s get together now to make sure your RMDs are taken well ahead of welcoming the new year! Give us a call to schedule a time to discuss.