Ep #020: Required Minimum Distributions
Unfortunately, you cannot keep your retirement funds in your account indefinitely. When you reach the age of 72, you generally have to start taking required withdrawals from your retirement plan account. This is an essential end-of-year financial planning topic because if this applies to you and you do not follow the rules of the IRS, you could be paying as much as a 50% penalty on the amount that wasn’t drawn. So, in this episode, I will be explaining what you need to do to ensure you don’t get penalized.
Listen in as I share a very popular account that isn’t subject to this rule and what to do if you’re still working and participating in your employer plan. You will learn why this is such an important rule to be aware of as a business owner, how this impacts you if you are retired but still own a portion of a business, and why the IRS has these rules in place.
Listen to the full episode:
What You’ll Learn:
- Why you have to take the minimum required dollar amount out of your account at age 72.
- How much the penalty is if you don’t take out the required minimum dollar amount.
- Why the IRS has these rules in place.
- A popular account that isn’t subject to this rule.
- How this impacts you if you still own a portion of a business.
- Why this is important for business owners.
Ideas Worth Sharing:
- “If you have money in a Roth, there is no minimum required distribution.” - Tom Poltersdorf
- “The longer you wait to put a plan together for retirement, your planning options become limited.” - Tom Poltersdorf
- “With careful planning in advance, you can lower your taxes in retirement.” - Tom Poltersdorf
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