Retirees have until the end of Saturday to make their first mandatory retirement plan withdrawal if they want to avoid being penalized.
Payments from retirement plans are usually made by the end of the year, but retirees who turned 72 in 2022 are covered by a rule allowing any involved in workplace retirement plans to wait until as late as Saturday to take their first required minimum distribution payment, also known as an RMD. Once this first payment is taken, future RMD payments must be made by Dec. 31 in every following year, according to the IRS.
Any retirees who fail to withdraw their first RMD or do not take out enough money for the payment will receive a 25% penalty based on the amount recipients need to withdraw. The exact amount one should withdraw every year for their RMDs is usually calculated by dividing each retirement account’s prior balance on Dec. 31 by a “distribution period” published every year by the IRS, according to CNBC.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Retirement 2023: Retirees need to withdraw first payment from plans in two daysThere are only two days left for retirees to make their first mandatory retirement plan withdrawal to avoid being penalized.
Read more »
Retirement 2023: 68 percent concerned they will not have enough money to retire comfortablyThe current economic forecast is causing concern for people planning to retire in the future. A total of 68% of people in the US are either very concerned or somewhat concerned that they will not have enough money to 'live comfortably during retirement.'
Read more »
First Maybach EV set for 2023 Shanghai auto show debutMercedes-Benz's EQS SUV serves as the basis of the first Maybach electric vehicle.
Read more »
2023 Jeep Magneto Concept First Look: Is This the All-Electric Wrangler?This 650-hp electric Wrangler with a manual transmission could be the future of not just an iconic nameplate but off-roading as a whole.
Read more »
The First Countdown: 2023 Opening Day brings new urgency to MLBThe minute hand is approaching The Time, and you are scrambling in the kitchen. You stick the snacks in the crook of your elbow, hold the napkins between your cheek and shoulder, grab the beverages, race-walk to the couch, unburden yourself and snap to attention. The commercial is ending.
Read more »
Polestar 3 first look: Possibly the best-looking EV for 2023 | EngadgetWhile it won't hit the roads until sometime in Q4, the upcoming Polestar might just be the best-looking new EV on the market in 2023..
Read more »