Mandatory distribution requirements may apply to your retirement account, as stipulated by the Internal Revenue Service (IRS). These compulsory withdrawals, known as Required Minimum Distributions (RMDs), are obligatory for Traditional IRAs SEP IRAs, SIMPLE IRAs, and retirement plan accounts and commence from when you reach age 72 (73 if you reach age 72 after Dec. 31, 2022).If you reached age 73 in 2023, you were 72 in 2022 and subject to the age 72 RMD rule in effect for 2022. If you reached age 72 in 2022, - Your first RMD is due by April 1, 2023, based on your account balance on December 31, 2021, and - Your second RMD is due by December 31, 2023, based on your account balance on December 31, 2022.
Notably, Roth IRAs, in contrast, are not subject to RMDs, offering a unique flexibility in managing your retirement assets. The precise calculation of RMD amounts involves various factors, and for detailed information, it is advisable to consult the official IRS website or your CPA or tax advisor. Stay informed and plan accordingly to navigate the intricacies of retirement account management.
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We always recommend speaking with a financial advisor and/or tax professional, as it is crucial for making informed decisions that are in compliance with current regulations, and tailored to your specific financial situation. This document is for informational use only and should not be considered financial advice. Cryptocurrency investments and IRA regulations are complex and can change. It's essential to conduct your own research and consult professional advisors before making any financial decisions related to cryptocurrency in an IRA.