Required Minimum Distribution

By Donald A. Galade CEO, GFS Financial Advisors, LLC

Many may know that the RMD or (required minimum distribution) requirement for IRA/401(k) qualified plans had been amended in 2019 moving the starting age one must withdraw funds from 70.5 to 72. Once signed into law the newly passed legislation known as Secure Act 2.0 amends the rule further for 2023. The minimum starting age for RMD’s will be pushed back to 73, and it increases to 75 starting 2033. So many who do not need money from their qualified plan, will not be forced to start withdrawals.

If you turned 72 in 2022, you must take the initial RMD by April 1, 2023, but for those who turn 72 in 2023 you can put off withdrawing the minimum to April 1, 2025. These constantly changing rules are not easy to follow, but ignorance is no excuse for Uncle Same. If you do not take an RMD when you are required, the penalty for NOT taking the distribution is 50% of the amount not taken. Yes 50%. That is in addition to the amount of the RMD. That is a mistake no one can ever afford.

For those in or approaching retirement you need the services of a qualified licensed financial professional, not only to grow your assets but more importantly protect them. That is why I will be hosting a free educational event for anyone who desires to attend on January 26th at the Butler Township Community Center, located at 411 W. Butler Drive in Drums, PA. 18222. There will be two seating times available. One starting at 10am and another at 6pm. We will be discussing the changes in RMD’s, Social Security, and Tax Laws for 2023. Seating is limited. Please call 570-5011200 to reserve your spot for this event.

I have been in the financial services industry since 1987 and I am an International Best-Selling Author of two books. In God We Trust - The Dollar We Worship and 5 StepsYour Guide To Financial Health. It shows the reader what to look for and look out for when developing a financial plan and investing. Those attending my free educational event will receive a FREE E-Book version of both books. I also have a Podcast called Money Matters and it can be found here: https://anchor.fm/don-galade