Turn on Your IRA Auto-Pilot

As of December 6, four out of ten people had yet to take withdrawals from their IRA, thus putting them in danger of a tax penalty up to 50% of the amount they should have taken out.  One solution to prevent this from happening is to put your IRA distributions on auto-pilot.

In tax year 2013, almost half of Fidelity’s IRA owners who were required to take out money were enrolled in its automatic withdrawals.

See Ashlea Ebeling, A Solution to the IRA Required Minimum Distribution Blues, Forbes, Dec. 19, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.