May 24, 2016
IRA owners must begin taking required minimum distributions (RMDs) the year the owner reaches age 70½, and every year thereafter. RMDs are the minimum amount that must be withdrawn from most types of IRAs. Account owners can take more than the minimum. Whatever the amount, it will usually be treated as ordinary income for tax purposes.
"[Y]ou have until April 1 of the year after you turn age 70½ for the first withdrawal, then you must take required withdrawals by December 31 every year after that,” according to Kiplingers.
The exception is the Roth IRA, according to Peak Advisor Alliance. "RMDs are not required with Roth IRAs; however, designated Roth accounts, which hold Roth contributions made to 401(k), 403(b), and 457(b) plans, are subject to RMDs."
Failing to take an RMD, or taking too small an RMD, can result in a penalty tax. Consult your financial professional for assistance.
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Since before I can remember, taxpayers have had the option of reducing their income (to arrive at taxable income) by using either the standard deduction or itemized deductions. It was the one place on the tax return where most folks felt like the IRS granted them a little bit of favor…because you got to deduct whichever...
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