Required Minimum Distribution (RMD) Season
It’s that time of year already — 2018 is nearing an end and with that means our team is making sure all of our clients who are required to take a minimum distribution from their IRA have done so. If you are unfamiliar or unsure what a RMD is or if you need to take it, we’ve provided some additional information below.
What is a RMD and Do You Need to Take One?
Per the IRS, you will be required to take a minimum distribution from your retirement accounts starting the year that you turn 70 ½ years old. The amount of your RMD is determined by applying a life expectancy factor set by the IRS to your account balance at the end of the previous year.
If you turned 70 ½ this year and are now required to take your distribution, you do have the option to elect to defer your RMD in the first year. If you decide on a deferred distribution, you will still be required to take the distribution prior to April 1st of the following calendar year. Some exceptions may apply in certain retirement and qualified plans and we would suggest speaking with your CPA or tax attorney to discuss whether those would apply to you.*
It is very important that your RMDs are completed in a timely manner because if you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required. Our team has already started reaching out to our clients who do need to take their RMDs, but if you have any questions or concerns surrounding whether or not you need to take your RMD, please let us know.
Upcoming Client Opportunity:
Dial-In Call with Social Security Benefits Specialist
According to recently released data from the Social Security Administration, Social Security is still a major source of income for most of the elderly in the US. Nearly nine out of ten individuals age 65 and older receive Social Security benefits which represents about 33% of the income for the elderly. Approximately 48% of married couples and 69% of unmarried persons receive 50% or more of their income from Social Security. Lastly, 21% of married couples and about 44% of unmarried persons rely on Social Security for 90% or more of their income. There is no denying that Social Security benefits are a significant factor to consider and plan for in life after retirement.
To help our clients more successfully plan for their Social Security benefits and ensure that they can navigate the ever changing regulatory environment, Collins Investment Group has partnered with MFS to bring an opportunity for our clients to speak with one of their Social Security Benefit Specialists.
The call will be conducted on Tuesday, November 13, 2018, and will be free for anyone who chooses to dial in. For your convenience, and because we would like to emphasize the importance of Social Security, there will be two dial in opportunities. The first time slot will be at 10:30AM, and the second time slot will be at 4:00PM (use links to register).
We encourage our clients who are approaching retirement and considering their Social Security options to join the call. Additionally, if you have a friend or family member that may also benefit from this call, we would love to have them join in as well.
As we get closer to the call date, we will confirm the details of the call and provide any dial-in information required. If you have any questions for us prior to the call, please let us know. We are looking forward to bringing this opportunity to you, and we hope that you’ll be able to benefit from it.
* Collins Investment Group is NOT a tax or legal advisor. Please consult your attorney or CPA.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Collins Investment Group is a separate entity from WFAFN.