Taxpayers born before 1951 need to take required minimum distributions (RMDs) by Dec. 31, to avoid penalties. RMDs are the mandatory withdrawals from many retirement plans and IRAs, including SIMPLE IRAs and SEPs. Roth IRAs aren’t subject to RMDs during the owners’ lifetimes. RMDs are taxable income and can incur penalties if not withdrawn on time. Previous tax law required RMDs to begin at age 72 and imposed a penalty of 50% on missed withdrawals. The Secure 2.0 Act raised the age to 73 and lowered the penalty to 25% (or 10% if corrected within two years). Contact us soon for help calculating the correct amount for your RMDs. Here’s more from the IRS: https://bit.ly/48oNYXC. © 2024