As we’ve noted in previous emails, laws and limits affecting all areas of financial planning tend to change with each passing year. One item that is always in flux is your required minimum distribution (RMD) out of retirement accounts. If you’re just now hearing about RMDs, they constitute the minimum amount you must withdraw from your retirement accounts over the course of the year to satisfy federal tax rules and will vary depending on your account balance and an annually revised Uniform Life Table devised by the Internal Revenue Service.

Owing to a positive 2023 in many markets, it’s likely that your RMD might be increasing in 2024. It is important to stay up to date on these movements, not only because failure to meet RMD requirements can result in a financial penalty, but because RMDs are also taxable income that must be reported.

Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reach age 72 in 2023, the required beginning date for your first RMD is April 1, 2025, for 2024. For those already subject to RMDs, the established deadline continues to be Dec. 31.

There are many options available for managing RMDs and helping to mitigate your potential tax liability. However, with those differing options and constantly moving requirements, seeking the help and guidance of professionals can provide you with fewer questions and more confidence.

Contact us at 678-539-9518 and find out ways you can better manage your distributions this year.

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Insurance products are offered through the insurance business Consha Financial. Consha Financial is also an Investment Advisory practice that offers products and services through Impact Partnership Wealth, LLC (IPW), a Registered Investment Adviser. IPW does not offer insurance products. The insurance products offered by Consha Financial are not subject to Investment Advisor requirements.

This blog is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.