A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Boynton Financial LLC, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Boynton Financial LLC
(210) 602-3891

CLOSE

 

The 10% Penalty and Required Minimum Distributions: Today’s Slott Report Mailbag

By Sarah Brenner, JD
Director of Retirement Education

Question:

Hello,

I’m in my sixties, in the golden years for Roth conversions, which I’ve been doing. I’ve had a small Roth IRA account for more than 5 years. Last year I converted $90,000. This year will be about the same.

My question regards withdrawals. If I withdraw from my Roth IRA, am I exempt from the 10% early distribution penalty because I’m over age 59 1/2?

Thank you!

Answer:

The rules for the taxation of Roth IRA distributions can be confusing. Fortunately, this particular rule is easy. When you are over age 59 ½, you will never be subject to a 10% penalty on any withdrawal of converted amounts from your Roth IRA.

Question:

Hello Ed,

If I take more than my required minimum distribution (RMD) this year, will the IRS allow that as credit applied to following year’s RMD?

Looking forward to your answer!

Thank you,

Mark

Answer:

Hi Mark,

You can always take more than your RMD from your IRA in any given year. Unfortunately, this extra amount cannot be used as credit toward an RMD in a future year. Regardless of how much you take from your IRA this year, you will still need to satisfy the full RMD amount next year.

https://irahelp.com/slottreport/the-10-penalty-and-required-minimum-distributions-todays-slott-report-mailbag/

Ready To Take

THE NEXT STEP?

 

For more information about any of our products and services, schedule a meeting today.

Or give us a call at (210) 602-3891

Investment advisory services are offered through Boynton Financial LLC and is a State of Texas registered investment advisor.