1 Effective January 1, 2023, the required beginning date for RMDs is April 1 of the year after you turn age 73. You are required to take an RMD by December 31 each year after that. If you delay your first RMD until April 1 in the year after you turn 73, you will be required to take two RMDs in that year. You may be subject to additional taxes if RMDs are missed. Please see your tax advisor regarding your specific situation. For more information about taking RMDs from your employer-sponsored retirement plan account if you’re still working, review your employer’s plan’s highlights or the most recent Summary Plan Description.
2 Generally, because contributions to a Roth IRA have already been taxed, they can be taken as tax-free distributions at any time, but investment earnings distributed are subject to federal (and possibly state) income tax unless taken as part of a qualified distribution. A qualified distribution may be made after a five-year period has been satisfied (this period begins January 1 of the tax year of the first contribution or the year of the first conversion to any Roth IRA) and you are age 59½ or older, are disabled, or bought, built or rebuilt a first home (lifetime limit of $10,000). In situations where the original account owner is deceased, distributions to the beneficiary are also considered a qualified distribution. If you take a non-qualified distribution, the earnings portion of such distribution is subject to regular income taxes, plus a 10% additional federal tax (in addition to possible state additional taxes) if withdrawn before age 59½, unless an exception applies.
3 Effective January 1, 2024, SECURE Act 2.0 has eliminated RMDs for designated Roth accounts during the lifetime of the owner. However, you must still take RMDs from designated Roth accounts for 2023, including those with a required beginning date of April 1, 2024.
4 You can begin receiving Social Security retirement benefits as early as age 62, but the benefit amount you would receive is less than the amount you would receive if you were to wait until your full retirement age to begin collecting. The year and month you reach full retirement age — when you become eligible for unreduced Social Security retirement benefits — depends on the year you were born. To find your full retirement age, go to https://www.ssa.gov/benefits/retirement/planner/ageincrease.html.
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Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
This material should be regarded as educational information on Social Security and is not intended to provide specific advice. If you have questions regarding your particular situation, you should contact the Social Security Administration and/or your legal advisors.