Each year the Internal Revenue Service (IRS) notices taxpayers over the age of 72 as to their now required minimum distribution (RMD) on or before December 31. An exception exists for IRA owners who turned age 72 in the current year, 2022. They may delay the first RMD until April 1, 2023, however another RMD will be required by December 31, 2023. RMDs are generally required for several qualified retirement plans and apply to these IRAs: Individual Retirement Arrangements (IRAs), Simplified Employee Pension Plans (SEPs) and Savings Match Plans for Employees (SIMPLE) IRAs. RMDs also apply to 401(k), 403(b) and 457(b) plans. An exception to the RMD is a Roth IRA where no distribution requirements while the owner is living. Once owners pass, the IRAs are then transferred to designated beneficiaries (person or entity) and subject to taxable distributions. This can be addressed within your estate planning review and review of all your assets and qualified retirement plans. We can help you with estate planning review, preparation, amendments and codicils and related estate matters. Contact us at [email protected] or call us at 856-428-5577 to review your estate plan.
DiMedio Law is a New Jersey law firm whose practice includes estate planning and administration as well as many other services. Contact us at [email protected] or call us at 856-428-5577.
DISCLAIMER: This advisory is for general information purposes only. It does not constitute legal advice, and may not be used and relied upon as a substitute for legal advice regarding a specific legal issue or problem. Advice should be obtained from a qualified attorney licensed to practice in the jurisdiction where that advice is sought.