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Required Distributions
Planning
 

Generally, you are required to begin taking distributions from your retirement account(s) in the year you turn 70½. You may defer your distribution from your employer sponsored plan until you retire if you continue to work beyond the age of 70½. However, you may not defer distributions from your IRA (excluding Roth IRAs).

 

Timing of the distributions

Your first distribution must occur by April 1st of the year after the year you reach age 70½. You will then need to take a second distribution by December 31st of that same year. From that point forward, you will need to take the minimum distribution every year by December 31st.

 

Estimate your required minimum distributions

Our Required Minimum Distribution Planner will make estimating your distributions easy. Just follow the instructions for performing the calculation -enter your birthday and retirement plan balance plus a couple of other variables - and you're ready to calculate. Based on your life expectancy and several other factors, the results will show your estimated distribution amount(s) and the impact annual distributions may have on your retirement plan value over time.

 

Required Minimum Distribution (RMD)

Generally, the IRS requires that distributions must begin upon the owner's attainment of age 70½ from qualified plans and IRAs (excluding Roth IRAs). For qualified plans, the required distribution may be deferred until retirement if the employee continues to work beyond age 70½. However, distributions from IRAs must begin once age 70½ is attained.

 

Determining Your RMD

Generally speaking, your RMD is calculated by dividing your retirement account balance on December 31 of the prior year by your applicable life expectancy factor. Recent regulations provide that everyone determines the factor by using your age and the Uniform Lifetime Table. The only exception to the Uniform Lifetime Table is if a spouse, who is more than 10 years younger than the account owner, is the sole beneficiary. In this case, the joint life expectancy table is used to determine the factor.

 

Learn about how to transition your investments in retirement.


 

Your Guide to Required Minimum Distributions

 

Please consider the charges, risks, expenses and investment objectives carefully before investing. Please see a prospectus , or if available, a summary prospectus containing this and other information. Read it carefully before you invest or send money.

This calculator should not be used to calculate RMDs from inherited accounts, as different calculation rules apply.

If you do not take withdrawals, or you take less than you should, you'll owe a 50% federal penalty tax on the difference between the amount you withdrew and the amount you should have withdrawn. And you'll still have to withdraw the required amount and pay income tax due on the taxable amount. To determine how much of your RMD will be taxable, complete Form 8606, available at the IRS website.

Tax information contained herein is not intended or written to be used, and it cannot be used by taxpayers for the purposes of avoiding penalties that may be imposed on taxpayers. Such tax information and any estate planning information is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice.

A IRA should be considered a long-term investment. IRAs generally have expenses and account fees, which may impact the value of the account. Non-qualified withdrawals may be subject to taxes and penalties. Maximum contributions are subject to eligibility requirements. Depending on your eligibility, you may not be able to contribute the maximum amount. For more detailed information about taxes, consult IRS Publication 590 or your tax adviser regarding your personal circumstance.

Janus Distributors LLC