Dr. Friday highlights the importance of ensuring Required Minimum Distributions (RMDs) are taken on time to avoid a hefty 50% penalty. She explains how to avoid common missteps, such as overlooking communications from fiduciaries, and offers tips to manage RMDs effectively before the year-end deadline.
Transcript:
G’day, I’m Dr. Friday, President of Dr. Friday’s Tax and Financial Fund. To get more info, go to www.drfriday.com.
This is a one-minute moment. Do not forget your RMD. That’s your Required Minimum Distribution. Sometimes people sit there and they think, oh, my fiduciary person’s going to send it to me so I don’t have to do anything. And what happened is they’ve emailed something over to you, probably in early November, saying how much or how do you want us to handle this, and you didn’t look at the email.
So it is your responsibility. The penalty is 50% of what you would have taken out. So if you have a $10,000 RMD, Uncle Sam wants $5,000 of it because you didn’t take it out timely. Very easy to fix. Sometimes you can even get that waived. More importantly, let’s not let it happen. Make sure you have taken all of your Required Minimum Distributions and set an appointment. Go to drfriday.com.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.