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After retirement, you’re likely to have money stored away in various accounts. For a while, you’ll be able to leave it untouched, but after age seventy and a half, you must start taking money from them. This is known as required minimum distribution, or RMD, and it’s important you know what these factors are.

Note that these laws don’t go into place the moment you turn seventy and a half. Rather, they’ll state that you must start taking the payments on the April 1st immediately after you reach that age, with the contract value from December 31. Then, you must take all distributions by the end of the year. Continue reading ‘Just What is Required Minimum Distribution (RMD)?’ »

People put money into retirement accounts for various reasons. Generally, that money just sits there, but at some point they must start taking a required minimum distribution, or RMD, each year. This policy goes into place when they reach the age of seventy and a half, and can be somewhat confusing.

For one thing, the date in which the payments must start being taken is April 1st following the time they reach the mentioned age. To determine just what the RMD payment is, they must look at the contract value from December 31 of that year. This is the same figure they must examine every year thereafter.

To make matters worse, many people are more familiar with a different set of options. This is because the U. S. Treasury, in 2002, changed the system so that the required minimum distribution were lower, helping out your heirs and allowing you to plan in terms of your life expectancy. Continue reading ‘Discovering Required Minimum Distribution (RMD)’ »