You probably don’t think much (or ever) about your half birthday, but did you know that turning 70½ really is a big deal? Generally, you are required by the IRS to withdraw a minimum amount from your retirement plan – a required minimum distribution or ‘RMD’ – by April 1 of the year after you reach 70½. Not doing results in a hefty penalty of 50 percent of the RMD amount.
If you are now quickly checking your calendar to see when your 70½ birthday is and worrying about meeting this requirement, there’s no need to panic! In addition to tracking your birthday (so we can send you a birthday card!), Compass Point also keeps tabs on your half birthday so you don’t miss your RMD. But if you’re approaching this age and have some questions about taking your RMD, come in and talk to your advisor about your plan.
And if you have family members or friends who can use some friendly advice about their RMDs or retirement in general, our new referral program makes it easy for you to connect them with our team of advisors for help planning a stable financial future.