Gain ideas for helping clients take their traditional IRA required Minimum Distributions (RMDs) on time – and avoid penalties.
Distributions from IRAs are usually considered ordinary income and as such, may be subject to income tax.
In some cases, amounts may also be subject to the 10 percent early distribution penalty, if the amount is withdrawn before the IRA owner reaches age 59 ½ . However, there are exceptions.
Additionally, distributions from IRAs are usually optional, until the owner reaches a certain age.
