Investing BasicsIRAs: Required Minimum Distributions
At age 70 1/2, you must begin withdrawing minimum amounts from any account from which you've benefitted from pretax contributions and tax-deferred earnings. Roth IRAs are not subject to RMD rules. Account types subject to the Internal Revenue Service's required minimum distribution rules include:
- Traditional IRAs
- Rollover IRAs
- SEP IRAs
- SIMPLE plans and Keoghs
- Employer-sponsored plans, such as 401(k)s
It's important that you understand how the RMD rules may affect you, since the IRS can impose a hefty penalty for missed or insufficient distributions. A Homestead Funds' representative can help you determine whether you need to take a distribution from your account in order to satisfy this IRS requirement and, if so, how much. Just call 1-800-258-3030 to speak with one of our friendly client service associates.
You can read more about this topic in the Helpful Tips guide, Taking Your Required Minimum Distribution.
For information specific to your situation, consult a tax professional.
