Among the most complicated and frustrating Individual Retirement Account (IRA) rules are required minimum distributions (RMDs). RMDs are required on all traditional IRAs in and after the year the owner turns 72 years old. For inherited IRAs, RMDs are also obligatory starting in the year after the previous owner’s death.
A new RMD value must be calculated every year.
Although many companies will determine traditional IRA RMDs for you, the RMD of inherited IRAs is significantly more complex. The inherited IRA calculation is so onerous that account owners or their advisors must compute it manually.
Although the client is ultimately responsible, we provide assistance in calculating and implementing our clients’ RMDs, both traditional and inherited, each year as part of our “Comprehensive” and “Collaborative” service. We also provide the administrative support necessary to oversee the entire distribution process.
How to See Your Schwab RMD Online (2024 Update)
On June 2024, Schwab provided an update about viewing and taking your RMD on Schwab.com.
Distribute Your First 401(k) RMD in April or December?
Within employer-sponsored retirement plans, there are special provisions for employees (not owners) who continue to work beyond their typical required beginning date.