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DON’T FORGET to make mandatory withdrawals in retirement!
By Dr. David E. Marcinko MBA CMP®
SPONSOR: http://www.CertifiedMedicalPlanner.org
Once you do retire, and put your physician or medical career behind you, it’s important to realize that, at some point, the IRS expects you to draw down your 401(k) balance. Starting at age 72, you need to take required minimum distributions (RMDs).
Your annual RMD amount depends on the balance of your 401(k) and a formula that determines your life expectancy.
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QUERY: But – What happens if you don’t take your RMD for the year?
ANSWER: Well, you could end up paying a penalty. In fact, it’s a pretty hefty penalty of up to 50% of the amount you were supposed to withdraw. Paying that penalty can be pretty costly for someone living in retirement. As long as you’re vigilant and stay on top of the situation, though, you can avoid the penalty as well as these other costly 401(k) mistakes.
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Filed under: "Advisors Only", "Ask-an-Advisor", CMP Program, Glossary Terms, Investing, Retirement and Benefits, Touring with Marcinko | Tagged: 401(k) Plan, Certified Medical Planner™, CMP, David E. Marcinko, David Edward Marcinko, mandatory withdrawals, Required Minimum Distributions, retirement plan RMDs, RMD |
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