3. RMDs cannot be rolled over.
Once you take an RMD, you can't reinvest it into another retirement account, uk phone number list such as a Roth IRA. However, you can deposit that RMD into a savings account, invest the money in a brokerage account, or use it to buy other types of investments, such as real estate.
4. The RMD age has changed — and may change again.
In 2022, SECURE ACT 2.0 raises the RMD age from 72 to 73. People born in 1960 or later must begin taking RMDs at age 75. As seniors continue to live and work longer, our government will likely continue to incentivize able-bodied people to continue working and saving, and further delay the RMD age.
5. You can take action to avoid RMD penalties.
If you fail to pay your RMD in a given year, the IRS will slap you with one of the heaviest penalties in the tax books: 50% of your RMD amount. But if you realize you made the mistake and act quickly, you can file Form 5329, citing “reasonable cause” to explain your mistake and request that the penalty be waived.
6. Future year RMDs are based on the previous year's account balance.
The amount of your RMD for a given year is locked in by your account balances on December 31 of the previous year. Future fluctuations in those balances generally do not affect your RMD for the current year.
