Most people are aware of the tax concept, Required Minimum Distributions or “RMDs.” These are the tax rules that force you to take a distribution from your IRA or qualified plan, even when you don’t want to. Moreover, that distribution is usually taxable, and it cannot be rolled over!
Do you know the date you’re required to begin taking your required minimum distributions (RMDs) from your retirement accounts? For IRA owners or employer plan participants, your required beginning date (RBD) is a day that should be marked in red on your calendar. Be aware that the rules differ depending on the type of retirement account you have and whether you are the account owner or the beneficiary.
Prohibited transaction rules are in place to discourage account owners from acting in a self-serving or “self-dealing” manner. Do you know the rules?
Roth IRAs offer a trade-off. You decide to pay taxes now on your contribution (or conversion) in exchange for tax-free earnings down the road. Don’t miss out on Roth IRA benefits by making mistakes when you take a distribution.
IRAs are distributed differently than all other assets both during life and death. Here's Why:
It is important to know what your IRA custodian will tell you and what they will not or cannot tell you. The I in IRA stands for individual and many times it is up to the individual to know things or keep track of them.