Money and Success

Your Money Show

Brett Goldstein

Your Money Show – Avoid IRA and 401k Penalties

When you turn 70 ½, the IRS requires that you start withdrawing a minimum amount of money from your IRA. This is known as a Required Minimum Distribution or RMD. If you inherit an IRA from anyone other than your spouse and you are a beneficiary, you have to take RMDs starting the year after the death. Even Roth IRAs have to do RMDs after the owners death. The IRS created a program to penalize people who have not taken their RMD. The IRS may impose a 50%
penalty for not taking the RMD and a 6% penalty for rolling an RMD into an IRA.

The Department of Labor is also sending out letters to 401k plans asking for the last three years of documents. If you don’t have the proper documents the Dept of labor can fine you. Your Money Show tells you what you need to know to avoid the fines.

Our guest Mike Ciarochi author of The Physics of Success talks about the simple changes you can make that will enable you to achieve what you want.