No, it’s not the abbreviation of a hot new rock band. In financial parlance RMD stands for Required Minimum Distribution. It is the amount that traditional IRA and qualified plan participants must start distributing from their retirement accounts by April 1 following the year they reach age 70.5.
We realize that April 1st has long since passed, but this is no April Fool’s joke. You need to stay on top of this! RMD’s are determined by dividing the prior year-end fair market value of the retirement account by the applicable distribution period or life expectancy. By the way, Roth IRAs do not require withdrawals until after the death of the owner.
Matters of taxes and business formations are best handled by a top Las Vegas CPA. The right person for the job may well be Michael Mathews. This is a great time of year to make an appointment at his Northwest office located in the Lakes to discuss the financial future of yourself and your business. Make an appointment by calling (702) 240-5237.