We’d like to take this time to remind you of the IRS’s Required Minimum Distribution (RMD) rule. If you are 70 or older you may be required to withdrawal additional funds from your IRA before the end of the year or you may face stiff IRS penalties.

What are Required Minimum Distributions?
Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired.

Retirement plan participants and IRA owners are responsible for taking the correct amount of RMDs on time every year from their accounts, and they face stiff penalties for failure to take RMDs.

Since our Portfolio is based around withdrawing money generated from dividend payments and not reducing our principal, members who use our investment model within an IRA are likely to face RMD requirements once they reach the age of 70. If you believe this is affects you we recommend discussing what you need to do with your accountant.  For those of you who will be turning 70 in 2015, you may also want to talk to your accountant in the near future about your RMD requirements for 2015.

If you are affected by RMD and want specific advice on your current 4% Portfolio investments please feel free to contact us through the member’s Support Page. The below link provides more information on RMD.

Are you looking to generate a safe and reliable income stream through dividend stocks? The 4% Portfolio Retirement Service has built a model retirement portfolio of stocks across all 8 sectors and nearly 20 industries. Each company in our portfolio has established a strong history of paying and growing its dividend payment each year. Find out how we can help you build a safe, income producing portfolio. 

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