REWahoo
Give me a museum and I'll fill it. (Picasso) Give
For those of you who may live long enough to face the IRS rules for Required Minimum Distributions (RMD), I came across a Marketwatch article offering advice from Ed Slott:
Best ways to avoid RMD mistakes - Five tips for foolproof required minimum distributions
What's the big deal, you say? Like most creations of Congress and the IRS, the rules for RMD from your IRA are anything but simple. As an example, here's when you need to start your first withdrawal:
...your first RMD should be taken by Dec. 31 of the year you turn 70 1/2. "However, the date you must begin RMDs is generally April 1 of the year following the year you turn 70 1/2 , Slott wrote. "If you turn 70 1/2 at any time in 2007, then your RBD [Required Beginning Date] is April 1, 2008. If you wait until 2008 to take that first RMD, you have to also take a second RMD by Dec. 31, 2008."
Got it?
Best ways to avoid RMD mistakes - Five tips for foolproof required minimum distributions
What's the big deal, you say? Like most creations of Congress and the IRS, the rules for RMD from your IRA are anything but simple. As an example, here's when you need to start your first withdrawal:
...your first RMD should be taken by Dec. 31 of the year you turn 70 1/2. "However, the date you must begin RMDs is generally April 1 of the year following the year you turn 70 1/2 , Slott wrote. "If you turn 70 1/2 at any time in 2007, then your RBD [Required Beginning Date] is April 1, 2008. If you wait until 2008 to take that first RMD, you have to also take a second RMD by Dec. 31, 2008."
Got it?
