RMD Review Checklist: Key Issues to Consider Before Year-End
RMD Review Checklist: Key Issues to Consider Before Year-End
Are you over age 73? If so, have you taken your Required Minimum Distribution (RMD) from your Traditional, SIMPLE IRA or other (non-Roth) retirement plan? If not, don't wait until the end of December. The penalty for not taking an RMD is 25% of the amount not taken on time. Addressing this now provides you with more options and flexibility compared to waiting until year-end.
First, consider whether the amount of your RMD is greater than what you actually need for your current living expenses. While you must withdrawal the minimum amount, any dollars that exceed your needs could potentially be reinvested.
Next, take the time to review all applicable retirement accounts that fall under the RMD requirements. Make sure to assess whether you have satisfied the RMD for each account. Different accounts may have varying rules or thresholds, and understanding these details can help you avoid penalties.
Verify your tax withholding to ensure it accurately reflects your current financial situation. Changes in your income or financial needs may necessitate adjustments to your withholding strategy. Incorrect withholding could lead to an unexpected tax bill or penalties, so it's worth double-checking.
To assist you in exploring your options, click the link below to access a comprehensive one-page checklist. This checklist outlines nine fundamental considerations that are vital to developing an effective RMD strategy. It can serve as a useful tool to identify opportunities that you may not have previously considered.
RMD Checklist
While the checklist can help you spot good ways to identify all the different opportunities to consider, you may want to meet with a financial advisor to discuss your finances and goals and to identify what the best opportunities are for you.
If you don't have an an advisor, reach out to the Hurlow Wealth Management Group. For over two decades, we have helped Midwest Millionaires™ find clarity, make decisions with confidence, and feel comfort in retirement. Click here or call 812-333-4726 to schedule a complimentary introductory call.
