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Comments

  1. Wow, I didn’t realize the fine was so steep on not taking the RMDs. I recently read an article theorizing that the government may change the rules on Roths to also require RMDs in the future, hopefully that doesn’t happen!

    • Roger Wohlner says:

      Thanks for your comment John. The penalties for not taking RMDs has always been high, but with the reporting requirements for custodians that went in effect a few years ago the penalties are now easier to enforce. As for the Roth RMDs I had not heard this, but I would not be surprised if changes were to happen.

  2. My Roth 401(k) combines my after-tax contributions with my employer’s pre-tax contributions. Is my account subject to a partial RMD at age 70.5?

    • Roger Wohlner says:

      David thanks for the comment. Assuming that you don’t own 5% or more you may be able to delay the RMD on this 401(k) account only. Your best bet is to ask your plan provider or administrator.

  3. T E McGinness says:

    Whom would I look to in instruct my two children about how to direct our IRA’s into two new IRA accounts in each of their names? Is that a function of the custodial company or my lawyer?

    • Roger Wohlner says:

      Thank you for your comment. It sounds like you are looking to allow your children to be able to open inherited IRAs should they desire. You will want to check to see if your custodian can and will be able to facilitate this and you will also want to consult with either a financial advisor and/or an attorney who understands the IRA landscape. Not all advisors fully understand how this works and bad advice here can be costly to your kids.

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