- After you turn 70½, you must prepare for required minimum distributions from your individual retirement accounts and 401(k) plans.
- If you don’t take your so-called RMD in time, you’ll face a penalty of 50% of what you were supposed to withdraw.
- Got an RMD for 2019? You have less than four weeks to get it together.
“Individuals who turned 70½ this year — and those who are older — are responsible for taking required minimum distributions from their individual retirement accounts and from each of their 401(k) plans.”
“Generally, you have until Dec. 31 to take your so-called RMD.”
“People who just turned 70½ in 2019 may wait until April 1, 2020 to take their first distribution. However, they will still need to take a 2020 distribution by the end of that year.”
Details from Darla Mercado at CNBC at: https://www.cnbc.com/2019/12/10/if-you-miss-this-year-end-retirement-deadline-youll-face-a-50percent-tax.html
Source: Financial Planning for Women