Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
***
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.
***
***
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.
***
YOUR COMMENTS ARE APPRECIATED.
Thank You
***
***
Share this:
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 |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
RMD UPDATE 2022
https://www.msn.com/en-us/money/retirement/good-news-for-retirees-rmd-formula-changing-for-first-time-in-decades/ar-AASUH32?li=BBnb7Kz
Dr. David E. Marcinko MBA CMP®
LikeLike
Oh NO!
https://getpocket.com/explore/item/401-k-plans-no-longer-make-much-sense-for-savers?utm_source=pocket-newtab
Cheeto
LikeLike
Maybe Not!
https://www.nerdwallet.com/article/investing/maxing-out-401k?utm_source=taboola&utm_medium=native&utm_campaign=in_mktg_paid_010222_traffic_in_articles_prospecting_cm_desktop-contextual&utm_content=max-out-401k_401k#tblciGiC9aWPDzN9yXLpSuE8LDo3YRMDPuoFwO9ycCY6qixKJ8CCzj1co16mS5dbWvvWIAQ
Chaz
LikeLike
UPDATE
For the first time since 2002, the IRS has updated the actuarial tables that determine the amount of money a person must withdraw from their IRA or 401(k) at a certain age. While the SECURE Act changed the RMD age from 70.5 to 72, the updated Uniform Lifetime Table has lowered the size of RMDs, allowing you to keep more of your assets in a tax-deferred account. Of course, RMDs are only the minimum amount that must be withdrawn each year. You can certainly withdraw more from an IRA or 401(k), but remember: the larger the distribution, the larger your tax bill.
DEM
LikeLike