MSN/CNBC combo. Could be fake news. We may never know.
I cannot address the tax penalty; however, my mother’s Edward Jones agent contacts me each year for approval to transfer investment funds to Mother’s checking/savings account. There is an acronym/name she uses, but I do not know what it is without looking it up.
BTDR
No, it’s not ‘fake news’. You will be hit with a fifty percent penalty if you do not take RMD as required by law.
,
Normally, your brokerage house should be screaming at you if you don’t take it. They know how old you are, and how much is in your IRA, so they will unleash a stream of warnings.
You also have to take a RMD from non-sposal inherited IRAs, both regular and Roth, regardless of your age. If you inherit an IRA, you should study the rules carefully. You can make them work to your advantage to maximize the income you receive.
Yet another fine reason to abolish the IRS.
Bttt.
5.56mm
Study
IRAs are a bad deal in so many ways...
This article raises a question. It says you don’t have to take a distribution even after the age of 70.5 if you aren’t “retired”.
I collect Social Security, but also have Schedule C income from actively managed rental real estate and playing music.
So, it sounds to me like I’m not retired and don’t have to take a RMD at age 70.5.
Another question for my accountant.
IRS rules ???
The Founding States not only gave the power to appropriate taxes uniquely to the House of Representatives (1.7.1), but had appropriately allowed tax-paying citizens to vote only for representatives (1.2.1), not senators or presidents.
So patriots need to work with Trump to make sure that the corrupt, post-17th Amendment ratification Congress starts taking responsibility for federal tax laws and regulations instead of hiding behind non-elected federal bureaucrats who do Congress’s dirty appropriations work for it. (Hopefully this “party” will end under Trump’s watch.)
Corrupt Congress is wrongly letting the IRS get away with oppressing taxpayers with unpopular and unconstitutional tax laws, laws that Congress cannot justify under its constitutional Article I, Section 8-limited powers.
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.
And it so happens that the tax issues mentioned in the OP having nothing to do with those Section 8-limited powers imo.
Consider that corrupt lawmakers hiding behind non-elected, regulation-making bureaucrats has arguably helped to foster so-called “career” lawmakers.
Patriots need to support Trump in putting a stop to unconstitutional federal taxes. After such taxes are stopped, the individual states would probably find a tsunami of new revenues that they wouldn’t know what to do with.
Took advantage for the first time this year of QCD - Qualified Charitable Distribution - for wife’s IRS - allows direct transfer of distribution from the IRS host to a qualified charity - amount distributed counts toward the MRD but can be reported on tax return as a tax free distribution, thus avoiding federal income tax on that amount - since we were going to make a sizable contribution to the church anyway, this permits some tax advantage even if we don’t eventually donate enough over all to take an itemized deduction for charitable giving.....
A tax on top of the tax you already paid and if you don’t take your money out when they tell you they will tax you even more.
What a f##ked up system we have. FU IRS!
These are called Excess Annual Additions. The tax is 50% of the RMD you did not take. Make certain that you base your RMD on the total value of all of your IRAs on, if I recollect, December 31st of the preceding year. (Year end value.)
Bookmarked.
I’ve been an advisor for 25 yrs, large clientele. I have worked for some of the biggest banks and brokers in my career. I have never seen or heard of anyone paying this fine
In fact, the law changed as well. Now it must be willful
Most freepers know as much about finance as I know about farming on mars.
It’s real. Then if you pass and have any to leave your heirs and they cash it out, they take some of that too.
Our IRAs are in accounts that will automatically distribute the RMD once we turn 70-1/2 and keep doing so unless we tell them to do it differently.
Ping!