Pension Corporation of America
Wealth Management
Pension Corporation of America
2133 Luray Avenue
Cincinnati, OH 45206
513-281-3366
fax 513-281-1799
wealthmanagement@pencorp.com
www.pencorp.com
 
 




Required Minimum Distributions (RMDs)

 

What Are Required Minimum Distributions (RMDs)?

Required minimum distributions, often referred to as RMDs or minimum required distributions, are amounts that the federal government requires you to withdraw annually from traditional IRAs and employer-sponsored retirement plans after you reach age 72 (or, in some cases, after you retire). You can always withdraw more than the minimum amount from your IRA or plan in any year, but if you withdraw less than the required minimum, you will be subject to a federal penalty.

Note:  The Setting Every Community Up for Retirement Enhancement (SECURE) Act passed in late 2019 raised the RMD age from 70½ to 72, effective January 1, 2020. Anyone who turns 72 before July 1, 2021, (and therefore reached age 70½ before 2020), will need to take an RMD by December 31, 2021.

The RMD rules are calculated to spread out the distribution of your entire interest in an IRA or plan account over your lifetime. The purpose of the RMD rules is to ensure that people don't just accumulate retirement accounts, defer taxation, and leave these retirement funds as an inheritance. Instead, required minimum distributions generally have the effect of producing taxable income during your lifetime.



Advisory Services Offered Through PCA Investment Advisory Services, Inc.
Securities Offered Through L.M Kohn & Company 10151 Carver Road, Ste. 100., Cincinnati, OH 45242
Member FINRA/SIPC And a Registered Broker-Dealer not affiliated with PCA Investment Advisory Services, Inc. This communication is strictly intended for individuals residing in the state(s) of CT, IN, KY and OH. No offers may be made or accepted from any resident outside the specific states referenced.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2021.