As we approach the end of 2023, it is important to look at one’s entire financial picture and decide if any actions must be taken to optimize one’s finances in the coming year.  One such action that our Rebalance team prioritizes is reminding our clients ages 72 and over to automate their RMDs.

You might be wondering, what is an RMD?

 An RMD stands for a Required Minimum Distribution, that people must begin taking from their retirement accounts each year when they reach the age of 72. These withdrawals can come from a traditional IRA, SEP IRA, SIMPLE IRA, and other retirement plan accounts.

So what, you may ask, could happen if someone does not take an RMD? If one does not take an RMD, he or she is faced with a hefty tax penalty of at least 15%, which can greatly cut into their retirement savings account.

Automating RMDs is an excellent way to avoid this tax penalty and enjoy more retirement savings.

Our Rebalance client service team stands ready to assist any of our clients with this automation process, please feel free to reach out to us at any time.

Set it and forget it, and you will be further along on your journey of living well and retiring with more!

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