Unable to Locate Plan Participants
Are you able to locate all of the participants in your retirement plan? Are any of those over 70½? If so, those employees are required to take a...
Taxpayers with retirement plans, excluding Roth IRAs, are obligated to withdraw a required minimum distribution. The minimum distribution is the amount that you must withdraw from your retirement each year. Your minimum distribution is to be withdrawn by April 1 of the following year after you have reached the age 70 ½. If you wait to withdraw you first distribution until April 1, then you will two distributions withdrawn in the same year.
To amount of the required minimum distribution that you are obligated to withdraw can be calculated by dividing the balance of all retirement accounts subject to the requirement at the end of the preceding year by a distribution period from the IRS’s “Uniform Lifetime Table” that is available in IRS’s website at http://www.irs.gov/publications/p590b/index.html. If the owner’s spouse is the sole beneficiary and is more than ten years younger that the owner, a separate table should be used.
Baldwin CPAs can help you calculate your required minimum distribution that should be withdrawn. Call us at 1-866-287-9604 for more information.
posted by Keith Fryman
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