Finally reaching the point where you can withdraw money from your retirement account should feel like a reward for years of saving. But nothing takes the joy out of retirement faster than facing hefty penalties for a missed RMD or miscalculated Required Minimum Distribution (RMD).
New Rules with SECURE Act & SECURE 2.0 for RMD Calculation
If you’re approaching age 73, now’s the time to familiarize yourself with the updated laws under the SECURE Act and SECURE 2.0, which could impact how much you are required to withdraw from your retirement accounts each year. With the rules constantly changing, it’s easy to make mistakes that could lead to unnecessary tax penalties—but the good news is, you don’t have to navigate this alone. Make sure you don’t have a missed RMD.
We’ve put together a free guide, “Calculating your RMD in 5 Easy Steps,” to help you calculate your RMD correctly and avoid those penalties. Click below to download your free guide and learn how to:
- Determine Your Distribution Year: Know when your first RMD is due and the difference between taking your first RMD and your subsequent ones.
- Locate Your Retirement Plan Balance: Understanding the balance to use is crucial. Don’t forget to account for any rollovers from the previous year.
- Calculate Your Life Expectancy Factor: Ensure you’re using the correct life expectancy table, especially if your spouse is more than 10 years younger.
- Do the Math Correctly: Learn the simple formula to calculate your RMD and how to avoid the 50% penalty for missing a distribution.
- Take Notice of Aggregation Rules: Not all retirement accounts are treated the same. Find out which types of accounts can be aggregated when taking RMDs and which can’t.
What Exactly is an RMD?
An RMD, or Required Minimum Distribution, is the minimum amount you must withdraw from your retirement account each year. This begins at age 73 (up from age 70 ½ due to the SECURE Act). RMD rules can feel overwhelming, especially if you have multiple accounts. Taking the time to understand and plan for them can save you significant amounts of money in penalties and taxes.
Don’t Risk a Costly Mistake with RMD Calculations or Missed RMD
Failure to withdraw the full amount of your RMD on time could result in a penalty. This could cost up to 50% on any portion you didn’t take. That’s a significant hit to your retirement savings. The last thing you want is to see your hard-earned money get whittled away by preventable mistakes.
To ensure you’re on track, schedule a consultation with one of our advisors at RFG Wealth Advisory. We will walk you through the steps you need to take to calculate your RMD correctly. We’ll help stay compliant with new laws, plus protect your retirement savings.
At RFG Wealth Advisory, our fiduciary duty ensures your interests always come first. We’re an independent, fee-only Registered Investment Advisor firm with a transparent fee structure for your peace of mind.
Call our office at 940-464-4104, reply to this email, or schedule an appointment online at https://rfgwealthadvisory.com/virtualconsultation/
Don’t wait—protect your financial future and make sure your RMD strategy works for you!
P.S. Download our “5 Easy Steps for Calculating Your RMD” to start on the right track today!
Calculating your RMD in 5 Easy Steps
Disclaimer
Financial Success Doesn’t Happen by Chance.
Contact lead advisor Chris Robinson with RFG Wealth Advisory in Argyle, Texas to discuss your questions.
RFG Wealth Advisory is an independent, fee-only Registered Investment Advisor firm in Argyle, Texas. At RFG Wealth, our fiduciary duty ensures your interests always come first, and we maintain a transparent fee structure for your peace of mind. Contact us today!
Investment advice is offered through RFG Wealth Advisory, a Registered Investment Advisor.
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Chris Robinson is the president of RFG Wealth Advisory, which he founded in 1995. He is a current resident of Argyle and native of Denton, Texas.
