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2022 REQUIRED MINIMUM DISTRIBUTION From The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) became law on December 20, 2019. The Secure Act made major changes to the
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Individuals who have reached the age of 72 (or 70½ for those born before July 1, 1949) and own certain retirement accounts, such as traditional IRAs, 401(k)s, 403(b)s, or other qualified retirement plans, are required to take a minimum distribution from their accounts each year. This requirement ensures that individuals start withdrawing funds from these tax-advantaged accounts and pay the necessary taxes on the distributions.
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The required minimum distribution (RMD) refers to the minimum amount that a retirement account holder must withdraw from their account annually after reaching a certain age, typically 72 years old.
Individuals who have retirement accounts such as IRAs, 401(k)s, and other qualified plans are required to file for their required minimum distributions once they reach the mandated age.
To fill out the required minimum distribution form, account holders need to specify their account details, calculate their RMD based on IRS tables, and provide the appropriate documentation to their custodian.
The purpose of the required minimum distribution is to ensure that individuals begin withdrawing funds from their retirement accounts and paying taxes on those distributions during their lifetime.
The information that must be reported includes the account holder's name, account number, date of birth, calculation of the RMD, the amount withdrawn, and any tax withholding elections.
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