BIRDSEYE FINANCIAL SERVICES (360) 722-7889
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MORE INFO
AGE 73 and Older
What Is a Required Minimum Distribution (RMD)?
A required minimum distribution (RMD) is the amount of money that must be withdrawn from an employer-sponsored retirement plan, traditional IRA, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified retirement plan participants of retirement age.
​

In 2023, the age for withdrawing from retirement accounts changed. You must begin withdrawing from a retirement account by April 1 following the year account holders reach age 73. The retiree must then withdraw the RMD amount each subsequent year based on the current RMD calculation.


KEY TAKE AWAYS
  • 50% Penalty - The required minimum distribution (RMD) is the amount you must take out of your account to avoid tax penalty consequences. Retirees often take more than the RMD requirement each year on current withdrawals.
  • MULTIPLE IRA's - If you have multiple accounts, you will usually need to calculate the RMD for each separately and may have to take an RMD from each or all from one qualified account of your choice.
  • INHERITED IRA - The SECURE Act of 2019 changed the distribution rules for some inherited IRAs, effectively eliminating the "stretch IRA"—an estate planning strategy that extended the tax-deferral benefits of IRAs.
  • ROTH IRA - The RMD rules do not apply to ROTH IRA's while the owner is still alive. The funds inside of a ROTH must be aged 5 years and the owner must be over 59 1/2 to access the growth of the account tax free. Funds paid into a ROTH are after tax.
  • ROTH 401K - Roth 401(k) accounts are subject to the same required minimum distribution (RMD) rules that apply to traditional 401(k) accounts. Therefore, the account owner must start taking RMDs from her Roth 401(k) for the year in which she reaches age 73 and continue for every year thereafter. ​
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HOW TO MAXIMIZE TAX STRATEGIES
​TAX STRATEGIES can make a significant difference in your retirement planning years. We find many individuals do not utilize the strategies available to them each year. Remember many of these strategies must be used prior to December 31st in order to be used to your advantage. ​​Request your FREE TAX STRATEGY SESSION...
Understanding Required Minimum Distribution (RMD)
A required minimum distribution (RMD) acts as a safeguard against people using a retirement account to avoid paying taxes. Required minimum distributions are determined by dividing the retirement account’s prior year-end fair market value (FMV) by the applicable distribution period or life expectancy. The Internal Revenue Service (IRS) has a worksheet to help taxpayers calculate the amount they must withdraw. Generally, your account custodian or plan administrator will calculate these amounts and report them to the IRS.

Some qualified plans allow certain participants to defer the start of their RMDs until they actually retire, even if they are older than age 73. Qualified plan participants should check with their employers to determine whether they are eligible for this deferral.

It should be noted that while an account holder must withdraw the required minimum distribution amount, they can also withdraw above that amount. If the account holder wants to withdraw 100% of the account in the first year, that’s perfectly legal, but the tax bill could be a shocker.

RESOURCES
Internal Revenue Service. "Retirement Plan and IRA Required Minimum Distributions FAQs." Accessed Nov. 14 2021.
Internal Revenue Service. "Retirement Topics — Required Minimum Distributions (RMDs)." Accessed Nov. 14, 2021.
Internal Revenue Service. "IRA Required Minimum Distribution Worksheet." Accessed Nov. 14, 2021.
Internal Revenue Service. "Required Minimum Distribution Worksheets." Accessed Nov. 14, 2021.
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Vendor Bookings
Ring Central
Birdseye Financial Inc
136 Hillside Dr E
Burleson, TX 76028
Main # 360-722-7889
Texas # 817-704-3544
Fax #425-412-6865
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INFO@BIRDSEYEFINANCIAL.COM
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The content of the Birdseye Financial website, email, fax, social media, text messages, online meetings, and phone calls are for educational purposes only. Any material and its attachments, links, downloads, and/or any emails from Birdseye Financial employees/contractors are not intended to provide legal or tax advice. To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal or state tax advice contained in communication (via Website, Email, Fax, Text, Social Media, in person, or by phone) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Please seek the advice of appropriately licensed individuals for legal or tax advice relating to your individual situation. Birdseye Financial and its employees/contractors are not tax, legal, or investment advisors and are not operating in such a manner. Any advice you receive should be taken as non-tax, not legal, and non-investment advice and only educational in nature. Should our clients need a licensed investment advisor, we recommend LifePro Asset Management. Please know investments in the market carry an inherent element of risk. No investment in the market or strategy can guarantee a profit or prevent a loss. Any illustrations used in the sales or service process are to be considered hypothetical and for explanatory purposes only. 

MEDICARE MANDATORY DISCLAIMER
“We do not offer every plan available in your area. Currently in WA State we represent seven organizations which offer 34 products in Snohomish County and 33 products in King County and 19 products in Whatcom County. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all your options.” All calls regarding Medicare may be recorded by phone or online and a SCOPE of appointment required by Medicare will be obtained 48 hours prior to any sales meeting to discuss plan details. (NOTE - The organizations and plans can vary by state and county, we can validate these numbers upon request.)

Birdseye Financial and its employees/contractors are not employees/contractors of Medicare, the government, insurance company or any other agency. We are independent licensed agents. All calculators and illustrations shown or sent from our website, email or any other means are designed to be informational and educational only. They do not constitute investment advice. We encourage you to review your insurance and investment strategies periodically as your financial circumstances may change. On many products it is important to note that PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS OR INTENDED TO PREDICT ACTUAL PERFORMANCE. ACTUAL INTEREST CREDITING RESTULTS WILL VARY BASED ON MARKET CONDITIONS, INDEX ALLOCATIONS, AND INTEREST CAPS, RATES, SPREADS, PARTICIPATION RATES and possible Fees. The use of different time periods and funding amounts can cause results to differ from other products. Illustrations may be based on hypothetical historical data. 
 
State Licenses
LICENSES: AZ #7101306, CA #4140429, FL #W825259, GA #3621424, ID #863617, KS #7101306, MA #2176921, NV#3879853, NC #7101306, OK #3001663224, OR #7101306, TX #2695866, WA #190780. Note that in California, our DBA is Birdseye Financial and Insurance Services.


S&P 500 and S&P are registered trademarks of Standard and Poor's Financial Services LLC. No annuity or financial product discussed herein is sponsored, endorsed, sold, or promoted by Standard and Poor's Financial Services LLC, S&P Dow Jones Indices LLC, or their affiliates, and none of the Stand and Poor's Financial Services LLC, S&P Dow Jones Indices LLC, or their affiliates make any representation regarding the advisability of purchasing an insurance or financial product. This applies to all indexes used.
  • Home
  • About
    • Welcome to Birdseye
    • Who We Are
    • Risk & Portfolio Assessment
    • Request Free Consultation
  • Strategies
    • Key Components
    • Inflation Impact
    • Rule of 100
    • Sequence of Returns
    • Volatility Buffer >
      • Volatility Buffer Webinar
    • Tax Strategies >
      • Tax Free Income
      • RMD Calculator
      • IRA RMD RULES
      • ROTH IRA
      • ROTH Conversion
      • Tax Declassified Webinar
      • Qualified Charitable Donation
      • Business Tax Credit
    • Educational Webinars >
      • Taxes Declassified
      • Top 10 IRA Mistakes
      • Taxes in Retirement
      • 3 Economic Strategies
      • Five Key Areas of Retirement
    • Educational Videos
    • Documentaries
    • Recommendations
  • Planning
    • Retirement Analysis
    • Social Security >
      • Social Security Webinar
    • Pension Maximization
    • Risk Analysis and Investments
    • LifePro Asset Management
    • Federal Benefits >
      • Federal Benefit Kit
    • WA Retirement Systems
    • Business Tax Credit >
      • Research & Development Tax Credit
      • Employee Retention Tax Credit
      • Resources
  • Insurance
    • Annuities
    • Medicare >
      • Medicare Questionnaire
      • Medicare Clients
      • Medicare Networks
      • Medicare Rules
      • PEBB Benefits
    • Long-Term Care
    • Life Insurance >
      • Multi-Generational
      • Premium Financed
      • Final Expense
    • Health Insurance
    • Dental Insurance
    • Vision Insurance
  • Tools
    • Financial News Blog
    • Market Index Links
    • Market Simulations
    • Required Minimum Dist (RMD Calculator)
    • Calculators
    • Professional Referrals
    • Bankrate Interest Rates
    • Rate of Return Calculations
    • Zillow Home Value
    • Slides - Intro Step >
      • Slides - Hegna
      • Slides - Strategy
      • Slides - Taxes
      • Slides - Invest
      • Slides - Buffer
      • Slides - FIA
      • Slides - Income
      • Slides - Pension
      • Slides - ALL
  • Contact
    • Free Consultation
    • Schedule Appointment
    • Online Meeting
    • Secure Upload
    • Retirement Analysis (initial)
    • Retirement Software Client Portal
    • Application
    • Beneficiary Form
    • Rate our Service
    • Refer a Friend