MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

The 10th Tax Day of Christmas: Required Minimum Distributions

27 Dec 2019 · 1 min

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1:10

In this short, conversational video, Mark Kohler uses a holiday-themed metaphor to explain Required Minimum Distributions (RMDs) for IRA owners. He emphasizes that anyone with a traditional IRA who is 70½ years old or older, as well as beneficiaries of inherited IRAs regardless of age, must withdraw a minimum amount each year after December 31. Failure to take the required amount incurs a steep 50% penalty on the shortfall. Kohler advises viewers to use online calculators, consult their account representative, and read the linked article to determine the correct distribution amount and stay compliant before year‑end. The overall message is that while RMDs are a “necessary evil,” they can be managed with proper planning to avoid costly penalties.

Chapters

On the 10th day of Christmas, my true love gave to me an rmd. Now this, that may sound like some sort of assault vehicle or weapon, but it's not. It's called a required minimum distribution. Now why is this so important before year end and why did I include it on my list? Is because if you don't deal with it, the penalty is huge. Now here's who it applies to. Anybody that has an IRA that's 70 and a half years old or older. So think of your mom, dad, grandma, grandpa, or you or you've inherited an IRA. If you have an inherited IRA and could be 20 years old, you would be still in this group of people that need to deal with this and you've got to take a distribution from the IRA or the penalty is half, 50% of what you should have taken. There's some math to do, there's some easy calculators out there. You just got to talk to your account and make sure you're on track. But look down below, read the article and study if you're in that category and what you should do before your end. It's not a bad thing. It's just a necessary evil of having a cool IRA and having to take some money out once in a while. Make sure you're in compliance with that RMD because it is not worth the penalty if you make a mistake.