Remember when rolling over investment money, the accounts must be of “like kind” to move. For example, IRA money can come from a 401K, 403B holdings, or self-directed IRA accounts and you must withdraw at least a minimum amount annually after turning age 70 ½. This amount that you must withdraw is called the Required Minimum Distribution (RMD) which is determined by the Internal Revenue Service on an annual basis. Most companies require you to take the money in the third quarter of each year. The funds received from a RMD can be reinvested into non-qualified savings accounts (which you pay taxes on) or non-qualified annuities (which you do not pay taxes on until you withdraw the funds).
Before taking out your money for a RMD you should consult with your financial advisor and your CPA or tax advisor. At Newsad Insurance Services we guide our clients through this process making it simple and easy to understand. Tom Newsad has been offering financial services in Middletown, Trenton, Hamilton, Franklin, Carlisle, Dayton, and Monroe for 18 years. For more information, visit www.newsadinsurance.com.