Article Date:
September 2019


Word Count:
805

 

 

Make the RMD from Your Traditional IRA Tax-Free


Traditional IRAs offer a number of appealing benefits, including a tax deduction when you put your money in.

 

But starting April 1 following the year you turn 70 1/2, it’s time to pay the piper in the form of required minimum distributions (RMDs).1

 

Whether or not you want or need the money right then, the law requires you to take out a certain amount each year and pay taxes on it.

 

To make sure you honor your RMD requirement, the tax law levies a 50 percent penalty on the amount you were required to withdraw but failed to withdraw.2 That’s an attention-getting penalty.

 

Escape Route

 

After you ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Password


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee
Clicky