The end of 2021 is approaching and if you’re over the age of 72 and have an IRA account (with NEFCU or elsewhere), don’t forget to take your RMD by December 31, 2021 to avoid a 50% penalty on your required amount.
If you have multiple IRA accounts spread across multiple financial institutions, you can choose which account to withdraw from for your yearly RMD. NEFCU mailed letters earlier in the year letting IRA account holders know what the amount would be should you choose to do your RMD at NEFCU.
You can always withdraw more than the required amount if you choose. The funds can be deposited into an account at NEFCU, or you can take an official check to deposit elsewhere. Something else to consider when taking your RMD is whether you want taxes to be withheld at the time of withdrawal or if you want to report them when you file your 2021 tax returns.
If you have an IRA account and you turn 72 in 2021, you can wait until April 2022 to take your first RMD. However, your next RMD will need to be taken by December 31 of the current year going forward.
Remember that Roth IRAs do not require a withdrawal until after the death of its owner.
For more information on Required Minimum Distributions, call us at 800.966.8200 or visit irs.gov.