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How to Simplify Your RMD

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Each year we track and make sure that the necessary distributions happen for our RMD-eligible clients. This includes not only those who are 70½ and older, but also all those who have inherited IRAs.

It’s important that RMDs are completed by the December 31 deadline to avoid steep penalties. The following account types are subject to RMDs:

• traditional IRAs
• inherited traditional IRAs
• inherited Roth IRAs
• SEPs
• All employer-sponsored retirement plans, including profit-sharing plans, 401(k)s, Roth 401(k)s, 403(b)s, and 457(b)s

At this time of year, we’re actively reaching out to our clients to confirm their preferences for tax withholding and dollar destination for their distributions. If your RMD has not yet been fulfilled, you’ll receive an email or call from a member of our Planning Team.

You signature on a form is usually not needed to process your RMD if you’ve established a Standing Withholding Election (your pre-set choice for how much to withhold for federal and state taxes).

But there is a way to make the processing of your RMD even more seamless.

Making It Automatic: Auto RMD
Whether you take your RMD as a lump sum or spread it out over the year with monthly or quarterly distributions, you can take advantage of Raymond James’s Auto RMD service.

Auto RMDs can be set up to make your distribution in one lump sum on the same date each year, or it can be set up to satisfy the RMD with periodic distributions (monthly, quarterly, or semi-annually). 

A form and your signature are needed to establish an Auto RMD, but once it’s set up, your RMD will be automatically processed without any further input from you or your advisor. It will remain in effect from year to year, but you can make changes to your withholding or dollar destination, or you can discontinue it, at any time.

Auto RMDs can be set up to make your distribution in one lump sum on the same date each year, or it can be set up to satisfy the RMD with periodic distributions (monthly, quarterly, or semi-annually). If periodic distributions are chosen, the Auto RMD will automatically reset the amount of those distributions at the beginning of each new year.

Who Shouldn’t Use the Auto RMD

• those who take distributions for more than one IRA from one IRA
• those who distribute more than their required minimum each year

How to Enroll in Auto RMD
Simply let your advisor or any TGS team member know that you’d like to get started with an Auto RMD and we’ll get the paperwork rolling.

By Joan Hill / Communications Coordinator

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by TGS Financial Advisors), or any non-investment related content, made reference to directly or indirectly in this article will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this article serves as the receipt of, or as a substitute for, personalized investment advice from TGS Financial Advisors. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. TGS Financial Advisors is neither a law firm nor a certified public accounting firm and no portion of this article’s content should be construed as legal or accounting advice. A copy of the TGS Financial Advisors’ current written disclosure statement discussing our advisory services and fees is available upon request.

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