Did you know about the new Secure Act which allows you to wait longer before you have to start withdrawing money from your qualified retirement accounts, such as your 401(k) or IRA? I thought to share with you this week’s article because it explains that “the new age limit for required minimum distributions (RMDs) is now 72, up from 70½. The change applies to those turning 70½ after Jan. 1, 2020. This delay gives your money a bit more time to grow in a tax-sheltered account while postponing your tax bill.” Did you also know “even if you have more time to wait, it’s still crucial to take your distribution on schedule. If you miss your RMD, you will end up owing a 50 percent penalty on the amount. That’s on top of the ordinary income tax you must pay on the money you withdraw.” (Read more about calculating your RMD in this week’s article.) Call us if you need any help understanding how the changes impact on your retirement savings plan. We’re always here to help.
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This commentary was created by a third-party for the Agent’s use. NTM 08-27.