Required Minimum Distributions
Help clients understand required minimum distributions (RMDs) for their traditional and rollover IRAs and calculate RMDs.
Your clients will need to plan to take RMDs from their traditional or rollover IRA accounts when they reach age 70½. If they don’t take their RMDs, the IRS may assess a 50% penalty on the amount they should have taken.
When your clients need to draw on their IRAs for RMDs or income, you can help them select and set up one of the following distribution options to fit their specific needs. Please note that distributions from an IRA are subject to income taxes, and any distribution taken prior to age 59½ may be subject to a 10% early withdrawal penalty.
Partial withdrawals. Withdraw any amount from the IRA account at any time.
Systematic Withdrawal Plans. Structure regular, automatic withdrawals from the IRA account; choose the amount and frequency to meet retirement income needs.