Investment Rollovers and RMDs

Remember, when rolling investment money over the accounts must be of “like kind” to move.  For example, IRA money can come from a 401(k), 403(b) holdings, or self-directed IRA accounts and you must withdraw at least a minimum amount annually after turning age 70 ½.  The amount that you must withdraw is called the Required Minimum Distribution (RMD), and this amount is determined by the Internal Revenue Service on an annual basis.  Most companies require you to take money in the third quarter of each year.  The funds received from an 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savings accounts (which you pay taxes on) or non-qualified annuities (which you do not pay taxes on until the funds are withdrawn).  Before taking out your money for an RMD, it is recommended that you consult with your financial advisor and your tax professional or CPA.

At Newsad Insurance Services, we guide our clients through this process making it simple and easy to understand.  Tom Newsad has been providing financial services in Middletown, Trenton, Hamilton, Franklin, Carlisle, Dayton, Monroe, and beyond for over 20 years.  Please visit www.newsadinsurance.com for more information.