7/27/2019 IRA_ Required Minimum Distributions _ IB Knowledge
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IRA: Required Minimum DistributionsGenerally, regulations
require traditional and rollover IRA owners to withdraw funds
beginning at age 70 1/2, and every
year thereafter. Determining your Required Minimum Distribution
(RMD) is significant while retaining an IRA, considering
both your life expectancy and the IRA's fair market value.
The required amount for each eligible person is based on the
December 31 IRA account value of the previous year and
the IRA owners date of birth. Your spouse's date of birth may
also be a factor if your spouse is at least 10 years younger
than you. Interactive Brokers LLC provides several information
resources to understand and calculate your RMD,
including access to the on-line RMD Calculator.
Principal Trust Company's Role
January RMD Notification
Beginning RMD Distributions
Requesting Your RMD Withdrawal
Determining Your RMD
Calculating Your RMD
Principal Trust Company's Role
Principal Trust Company serves as trustee of your retirement
plan, providing administration and compliance service. In
addition, the plan trustee is required to notify you about your
RMD.
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January RMD Notification
The Internal Revenue Service (IRS) requires the plan trustee,
Principal Trust Company, to notify IRA owners about the
RMD requirements by January 31 each year. If you turn 70 1/2
this year, you are required to begin taking RMDs before
April 1 of the following year.
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Beginning RMD Distributions
Eligible IRA owners must begin receiving withdrawals by December
31 of the year they reach age 70 1/2. The first RMD
withdrawal, however, may be delayed until April 1 of the
following year.
If you elect to delay the withdrawal, then please observe the
following considerations: (1) Two RMD withdrawals will be
required the following year, the undistributed initial RMD and
the new RMD. (2) The new RMD will be slightly larger due
to the December 31 market value's inclusion of the undistributed
initial RMD.
Subsequent RMD withdrawals from your IRA must be distributed by
December 31 to avoid a penalty tax.
Required Minimum Distributions | IB Knowledge Base
http://ibkb.interactivebrokers.com/n
10/20/2013
7/27/2019 IRA_ Required Minimum Distributions _ IB Knowledge
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3/3
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Required Minimum Distributions | IB Knowledge Base
http://ibkb.interactivebrokers.com/n
10/20/2013
