RMD's

RMD’s, Required Minimum Distributions are defined as the amount that traditional, SEP or SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 70 and a half.
Let me explain, Contributions to traditional IRAs and 401(k) accounts are not taxed upfront, but the U.S. government gets its due down the road. When you reach age 70-1/2, a certain amount of your tax-deferred savings in IRAsand most 401(k) accounts must be drawn down every year under the Required Minimum Distribution (RMD) rules.
And younger people may need to take RMDs on inherited IRAs.
If you miss paying an RMD you can get a 50% tax penalty, plus interest on the amounts you failed to draw on time.
The amount of RMD you owe is determined by your age, account balance and life expectancy. Retirees below the RMD age should consider planning steps to reduce their future potential impact.
If you have questions or would like more information call 320-679-5183, or go to the website yoursafemoneyshow.com.