A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Donato Wealth Management, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Donato Wealth Management
(512) 833-6557

CLOSE

REQUIRED MINIMUM DISTRIBUTIONS (RMDS): TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD
Director of Retirement Education

Question:

I am 75 years old and contributing to my company’s 401(K) plan. I have not taken an RMD from my 401(K) utilizing the “still-working exception.” I just retired on April 30, 2022. My question is: Do I have to take an RMD from my 401(K) for the current year 2022, or am I allowed to wait until next April 2023 to commence taking the first RMD from the 401(K) plan?

John

Answer:

Hi John,

Congratulations on your retirement! You will have an RMD for 2022 because you retired in 2022. However, because this is the first year for which you must take an RMD, you may delay taking that RMD until April 1, 2023. Keep in mind that if you do that, you will need to take two RMDs in 2023. The one for 2022 that you delayed and the one for 2023 which is due by December 31, 2023.

Question:

Hi – If my RMD from my IRAs is $20,000, but 5% of my contributions to the IRA were non-deductible contributions, does that mean I actually have to take more out that year to satisfy the RMD?

Thanks,

Margy

Answer:

Hi Margy,

Good news! Any funds in an IRA can satisfy an RMD. This includes nondeductible contributions. RMDs do not have to consist of only taxable funds. You will not need to take extra money out because a portion of your RMD is nontaxable.

https://www.irahelp.com/slottreport/required-minimum-distributions-rmds-todays-slott-report-mailbag

Ready To Take

THE NEXT STEP?

 

For more information about any of our products and services, schedule a meeting today.

Or give us a call at (512) 833-6557

Investment advisory services are offered through Foundations Investment Advisors, LLC and is a SEC registered investment advisor.

Investment advisory services are offered through Donato Wealth Management and is a SEC registered investment advisor.