REQUIRED MINIMUM DISTRIBUTION METHOD
It’s one of the three methods by which early retirees of any age may access their retirement funds without penalty before turning 59 ½. Funds that are often withdrawn before age 59 ½ are assessed a 10% early withdrawal penalty. Funds must be withdrawn as substantially equal periodic payments as outlined by Internal Revenue Code Section 72(t) and must continue for five years or until the retiree reaches 59 ½, whichever is longer. If withdrawals are stopped, all funds that have already been withdrawn become subject to early withdrawal penalties.
The annual distribution amount is calculated by dividing the retirement account balance on December 31 of the prior year by the retiree's remaining life expectancy as determined by the IRS's life expectancy table. This means that an increase in the retiree's account balance will lead to larger distributions and a decrease in the retiree's account balance will lead to smaller distributions.
POPULAR TERMS
Maximum Loan-to-Value Ratio
Cash Return on Assets Ratio
Retention Bonus
Infrastructure
Cost Control
POPULAR ARTICLE
SEE FOREX TUTORIAL
Digesting Financial Statements: Working Capital
A Guide to Your Personal Income Tax: Papers
An Introduction to Student Loans
Digesting Financial Statements: Pension Plans
How Do You Intend to Live?
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
05:00 | Credit Card Spending | Mar | |
14:30 | Industrial Product Price Index | Mar | |
14:30 | New Housing Price Index | Mar | |
14:30 | Raw Materials Price Index | Mar | |
16:00 | Consumer Confidence | Apr | |
02:30 | PMI Manufacturing | Apr | |
02:30 | Tertiary Industry Index | Apr | |
02:30 | PMI Composite | Apr | |
08:00 | Public Sector Net Borrowing | Mar |