Need to take your 2017 RMD? The deadline is approaching!

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If you hold a Traditional, SEP or SIMPLE IRA and are over 70½, you have until December 31, 2017, to take your required minimum distribution (RMD). Eligible account holders who have yet to take their first RMD are excluded, as they have until April 1 of next year. 

So, if you need to take your 2017 RMD by the end of the year, you have just over a month left!

2017 RMD

Wondering if you’re eligible? When you turn 70½ determines your eligibility. Therefore, if you turn 70 between January and June, you will be 70½ in 2017. You have up to April 1 of next year (2018) to take your first withdrawal. Even so, you still must take your second RMD-related withdrawal by December 31 later that year.

If you have or will turn 70 between July and December, then you won’t reach age 70½ until 2018. Therefore, you’ll need to take your first RMD in 2018 or may even wait until April 1, 2019. But for each IRA holder having already taken his or her first RMD, you must take an RMD by the end of the current year.

Don’t wait until the last minute to submit your 2017 RMD request.

Submit your 2017 distribution request as soon as possible because of the various year-end activity at service providers. Distribution requests alone pick up substantially in December, as do calls related to valuations, contributions, 1099s and more. Furthermore, if your distribution requires asset liquidation, the process could be delayed during this month because of holiday schedules at an investment sponsor’s office, market closures and depository workloads.

You may submit distribution requests directly to Kingdom Trust via the proper distribution forms. Visit our Manage My Account page for distribution forms related to IRAs and IRA-owned single member LLCs. You may email or fax these to our offices. While brokers and advisors could assist you in the process, you can submit any RMD-related request directly to Kingdom Trust.

For precious metals holders, please note the timetable for distribution depends solely on the depository once we’ve sent the paperwork. Kingdom Trust cannot specify a timetable since it will depend upon the workload of the depository.

Also, you have options if you don’t have enough cash in your account to take your 2017 RMD. You may liquidate assets in your account to create enough of a cash balance to take the RMD. You may also request an in-kind distribution of those assets up to the value required for the RMD. Alternatively, you may take a distribution of funds from another IRA until you meet the RMD amount. It is up to you and your team of professionals to determine which assets to liquidate.

If you don’t take your required minimum distribution by the applicable deadline, you’ll have to pay a 50% tax for the required minimum amount. So, it’s important to take care of this as soon as possible to avoid any delays that may adversely affect you. Kingdom Trust recommends you speak with members of your team of professionals for more specific questions about RMDs.

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