If you’re 70-1/2 this year or older, the IRS requires you to take distributions from your Traditional or SEP IRA accounts. These are referred to Required Minimum Distributions (RMD’s).
We have most of our investor’s setup for automatic annual distributions therefore no additional action is needed. Some investors choose to take care of these requirements themselves in various ways. In any case, the IRS expects these RMD’s to take place and holds the taxpayer responsible to ensure that it’s done. The IRS can penalize the taxpayer 50% of the amount that was supposed to be withdrawn.
There’s still time to verify your RMD is complete if you haven’t already done so. One quick way, is to check your most recent Schwab IRA account statement. Your IRA RMD information is located towards the last few pages of the statement. You can also verify your RMD withdrawal through your on-line access. You have until December 31, 2013 to make any necessary RMD withdraws.
Let us know if you have any questions.
Have a great weekend!
Bryan Weiss
Marian Financial Partners, Inc