Ask a goalgami Expert:Answer

Have a financial question?SUBMIT>



Question:


What is an RMD?
-Helen


Answer:


You may be referring to the required minimum distribution. This is money that must be withdrawn from certain types of retirement plans by April 1 of the calendar year after you turn 70 years and six months old, unless you're still working and participating in your employer's plan. The precise amount of your RMD can be found in Appendix C of IRS Publication 590. If you do not make the mandated withdrawals, the law calls for a 50 percent tax on the amount between the RMD and what you actually take out.
-Conrad de Aenlle



< BACK