When Must You Take an RMD and Penalties

💬 Show Notes

In this episode, Roger Whitney dives into the essentials of required minimum distributions, explaining the age thresholds, how the amounts are calculated using IRS life expectancy tables, and how to manage multiple IRAs and 401(k)s. He also answers listener questions, including whether a flexible premium deferred income annuity might make sense and how to determine how much you can safely give to loved ones or charity now. Packed with practical advice and actionable insights, this episode helps listeners navigate the rules and strategies that can impact their retirement planning.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• (00:00) This show is dedicated to helping you have the confidence to rock retirement.

THE RETIREMENT TOOLBOX

• (01:18) In this Retirement Toolbox segment, we take a timely look at required minimum distributions—what they are and how they work for the accounts you own.
• (03:22) A quick breakdown of the current IRS rules for required minimum distributions, outlining the different start ages based on your birth year.
• (05:22) How RMDs are calculated using your year-end balance and IRS life expectancy tables.
• (08:30) When should you take your money out, and what happens if you don’t?
• (10:48) How to handle RMDs across multiple IRAs and 401(k)s and why long-term planning and account consolidation matter.
• (14:00) What are some strategies to minimize or mitigate your future required minimum distributions?

LISTENER QUESTIONS

• (15:23) Submit your questions through AskRoger.me, and we’ll help you take a baby step toward a rock-solid retirement.
• (15:54) Our title question comes from Rich, who asks if a flexible premium deferred income annuity would be a good idea given his retirement savings, Social Security, pension, and minimal debt.
• (27:14) A listener asks how to determine how much they can safely give to loved ones or charity now, rather than leaving it as an inheritance later.

SMART SPRINT

• (33:22) In the next seven days, estimate your future RMD—even if it’s 10 years away—assuming your IRA or 401(k) grows at a reasonable rate.

CLOSING THOUGHTS

• (34:04) An update on the merger of Tanya Nichols’ and Roger’s advisory firms, with a new unified brand—Retire Agile—coming in 2026 and opportunities for client feedback on branding and design.

REFERENCES

• Submit a Question for Roger
• Sign up for The Noodle
• The Retirement Answer Man
• Schwab RMD Calculator
• Fidelity RMD Calculator