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LISTEN, UNDERSTAND, RESEARCH, HELP. Money management has a new reality. Financial-planning efforts must consider “the whole client.” We offer a multi layer approach that starts with education. We strive to gain your trust then deliver the results you seek. At Gelinas Financial Group, Inc., our passion is supporting our clients by adding value: You need information to make correct decisions. We’ll help you achieve higher levels of success and better process management through cutting-edge solutions, training, mentoring, and continuing education. Our objectivity and independence mean you get the financial-planning and risk-management solutions that meet the unique demands of your present situation. We offer our expertise in the following areas: Financial Planning Retirement Planning Insurance Investment Coaching Annuities More Hope is not a strategy. We meet with our clients regularly to scrutinize their investments and make adjustments.
How Do RMD's Work?
Gelinas Financial, GA, MYGAWhen a person retires from a job, that individual is rewarded with many bonuses for loyalty and one of those is retirement funds. A retiree will enjoy retirement funds until the day that person dies. However, there is a law that every pensioner must follow and that is RMDs or required minimum distributions. Here is how this system works. RMDs are the amount of money a retiree has to withdraw each year which is required by the federal government. This usually happens when an individual reaches the age of 70 ½. Retirees are required to withdraw from their retirement accounts such as traditional IRAs, simple IRAs, simplified employee pension IRAs, and many other types of retirement plans that the employer has sponsored for the individual. The purpose of RMDs and the reason why the federal government requires retirees to follow such a rule is so individuals get at least some money from the account and pay taxes on those funds. Those who do not comply with withdrawing money from their accounts or those who withdraw less than the required minimum amount will be given a severe penalty - 50% of the amount not withdrawn will be taxed which is a lot of money that will be wasted by the owner of the account. At the minimum, if an individual withdraws the minimum amount of money from a retirement account as required by law, it can be used for personal use and also pay for taxes. A retiree should calculate the amount he or she needs to contribute for the RMD. The amount that an account holder withdraws from a retirement plan will be subjected to the RMD requirements. The account balance as of December 31 of the year before the calendar year during which the distribution must be made will be the one to be used as a basis. For yearly withdrawals, a retiree should divide the account balance at the previous year's end by the amount that is indicated in the Uniform Lifetime Table. The table is provided by the IRS. RMDs is a requirement of the federal government and should be followed by every citizen. The upside of this system is that retirees can expect funds to be withdrawn from their accounts. A fraction of that withdrawn amount will be distributed for taxes. Sources: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Required-Minimum-Distributions-%28RMDs%29 https://personal.vanguard.com/us/insights/retirement/estimate-your-rmd-tool http://www.raymondjames.com/ira_minimum_dist.htm
Shawna Kreis
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