Required Minimum Distribution Reminder

By -
You are required by the Internal Revenue Service (IRS) to take a required minimum distribution (RMS) by April 1 of the year following the calendar year in which you reach age 70 ½ and by December 31 each subsequent year thereafter from your retirement accounts.  The first year following the year you reach age 70 ½ you will generally have two required distribution dates: an April 1 withdrawal (for the year you turn 70 ½), and an additional withdrawal by year end (for the year following the year you turn 70 ½).  To avoid having both of these amounts included in your income for the same year, you can make your first withdrawal by year end of the year you turn
70 ½  instead of waiting until April 1 of the following year.  If you need to make an RMD, please contact your financial advisor to help you request this distribution.  
RMDs generally are determined by dividing the prior year-end IRA balance by the life expectancy factor (or distribution period), as defined in IRS tables.  RMDs during your lifetime are based on a distribution period that can be determined using the Uniform Lifetime Table and your age.  
 

Popular posts from this blog

9 Facts About Retirement

By -
Image
Tip:  Nearly 70% of workers expect to work for pay in retirement, but only 26% of retirees actually have done so. Source: 2018 Retirement Confidence Survey, EBRI Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you. Many consider the standard retirement age to be 65. One of the key influencers in arriving at that age was Germany, which initially set its retirement age at 70 then lowered it to age 65.¹ Every day between now and the end of the next decade, another 10,000 baby boomers will turn 65. That’s roughly one person every 8 seconds.² In 2016, the latest year for which data is available, people aged 65 and older accounted for 15% of the population in the U.S. By 2060, they are expected to represent more than one-in-fo...
Read more

Women and Financial Strategies

By -
Image
Forty-four percent of American women are the primary breadwinner in their house. 1  Yet only 10% of women feel very confident in their ability to fully retire with a comfortable lifestyle. 2 Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Women and College The reason behind this disparity doesn't seem to be a lack of education or independence. Today, women are more likely to go to college and graduate than men. 3 So what keeps them from taking charge of their long-term financial picture? One reason may be a lack of confidence. In one recent study, less than half of the more than 2,000 women surveyed said they felt satisfied with their knowledge of finances. 4 Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result. Insider language Since Wall Street traditionally has been a male-dominated...
Read more

How Financial Advisors Are Compensated

By -
The fees that investors pay to financial advisors for their advice and services come in two basic forms: transaction fees and ongoing fees. While advisors may differ in what fees they charge, they are required to fully disclose them. Transaction Fees These fees are generally one-time fees assessed at the time a transaction is made. Examples of transaction fees include: Commissions Paid on the purchase and sale of a stock.¹ Mark Ups / Mark Downs Occur when a broker-dealer sells or buys an investor a position that it owns. FINRA guidelines ensure the prices paid by investors are reasonably related to the market for the security.² Sales Loads The sales charge for buying a mutual fund. They may either be front-end (charged when you buy the fund) or back-end (charged when you sell the fund).  Mutual funds are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and othe...
Read more