Everything You Need to Know About RMDs What are RMDs Once you turn 73, the IRS requires you to take a certain amount of money out of certain retirement accounts every year. That's to help ensure the government gets tax revenue from tax-sheltered retirement accounts.The accounts subject to RMDs are:Traditional IRAsRollover IRAsInherited IRAsSEP IRAsSIMPLE IRAs401(k), 403(b) and 457(b)sKeogh Plans When You Need to Take Your RMD Exactly when you need to make your first Required Minimum Distribution is more complicated than you might think. But RMD rules are tax rules, so you shouldn't be too surprised.You have to take your first Required Minimum Distribution by April 1 of the year after you turn 73. After your first RMD year, you need to make your required distributions by December 31 of each successive year.But here's why you don't want to wait until April 1 of the year after you turn 73: Then you'll have to take two distributions in the same year, and that could elevate you into a steeper tax bracket, increasing your taxes due. RMD Taxes and Penalties Your Required Minimum Distribution can get you with a very high tax bill. That's because RMDs are taxed as ordinary income at your federal income tax rate and you may owe state taxes on the money, too.The SECURE 2.0 Act decreases the penalty tax for missed RMDs (or simply taking too little) to 25%, and if the mistake is corrected during a two-year “correction window” the penalty is further reduced to 10%. We have answers to your questions:Calculating your RMDHow do I calculate my RMD?What if my spouse is more than 10 years younger?I can't find my RMD estimates on my account statement. Where is it located?Where can I find the Retirement Distribution Center?Can I find my RMD estimates anywhere else?How should I handle year-end transfers or rollovers?Will you help me receive my RMD automatically?How are RMD s taxed?What if I made non-deductible contributions to my IRA?Can I withdraw my total RMD from one account?Taking your first RMDWhen should I take my first RMD?How should I time my first RMD when it comes to taxes?Taking your RMDs each yearHow should I take my RMD s if I have multiple non-Roth accounts?What are the deadlines for taking RMDs? What are the penalties if I miss a deadline?Do I have to take my RMD if I am still working?Can I still contribute to my IRAs while taking RMD s?Beneficiaries and stretching tax advantages of assetsWhy is it so important to consider beneficiaries when taking RMDs?How do I name a beneficiary?Should I convert to a Roth IRA, since they don't have RMDs?What is a Qualified Charitable Distribution (QCD)?Are Qualified Charitable Distributions an option for my RMDs?How do I know if I'm qualified to make a QCD?For more information please contact our office at (860) 399-8202 or email email@example.com.