The Rules Related to Required Minimum Distributions

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We are writing to remind our clients of the rules related to Required Minimum Distributions (RMDs), as the distribution deadline for those that attained age 72 in 2021 is fast approaching. This reminder may be relevant to you or someone that you know.

By way of background, those that have attained age 72 during the calendar year 2021 and that have non-Roth Individual Retirement Accounts (IRAs), including Self Employed Pension (SEP) and SIMPLE plans, and/or non-Roth retirement plans, such as a 401(K), are required to process their 2021 mandated RMDs before April 1, 2022. In subsequent years, the distribution must be processed before December 31st. There is an exception to certain qualified retirement plan distributions for non-owner employees that are currently employed by the company sponsoring the plan. There is no such exception for IRAs or for retirement plans sponsored by firms where you are no longer employed.

Required Minimum Distributions for qualified retirement plans must be calculated and distributed separately from each plan. Individual Retirement Account RMDs may be aggregated for purposes of calculation and distribution. Note that RMDs are not required for a Roth IRA or Roth 401(K) that is owned by the original depositor.

Please note that if you attained age 72 in the calendar year 2021, are not exempted due to qualifying current employment, and have not yet distributed your 2021 RMD, you will be responsible for processing your 2021 RMD before April 1st and 2022 RMDs before December 31st of this year. There is a severe penalty for a missed RMD that is equal to 50% of the amount that should have been distributed from the account(s), so we urge clients to be mindful of these requirements.
The custodian of your IRA or retirement plan is required to provide you with the amount of the RMD that is attributed to each plan. If you have questions related to your IRA or retirement plan RMDs please contact the plan’s sponsor or custodian for additional information.

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS. Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS.

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.

This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.American Portfolios Financial Services, Inc.(APFS) and American Portfolios Advisors, Inc.(APA) are not affiliated with any other named business entities mentioned.