You may need to add RMDs to your year-end to-do list

For most taxpayers “of a certain age” with a tax-advantaged retirement account, as well as younger taxpayers who’ve inherited such an account, it’s critical to take required minimum distributions (RMDs) by year end. After age 70-1/2, you must take annual RMDs from your IRAs (except Roth IRAs) and, generally, defined contribution plans, such as 401(k)s. RMDs also can apply to inherited accounts, including Roth IRAs. If you don’t take RMDs by Dec. 31, you can owe a penalty equal to 50% of the amount you should have withdrawn but didn’t. Contact us with questions.