For many people who are faced with having to take their first required minimum distribution (RMD) from an IRA account April 1, 2016, is a deadline that should not be missed. “Any RMD not taken by the required date is subject to a 50% penalty plus the taxes that would otherwise be due.” Competent financial advisers can assist clients with doing what they need to get done before the deadline, but they will need to hurry before the deadline passes. This article provides important information about RMDs and how they work. Senior citizens who are 70 ½ or older are required to take out an annual RMD from their IRAs or any other retirement account they might have. Clients need to act on this quickly because the April first deadline is coming quickly and there will likely be many people trying to take out their RMDs at the last minute.
See Roger Wohlner, Advisors: Clients Must Take First RMD by April 1, Investopedia, March 23, 2016.
