RMD details
I’m retired and turned 73 in 2025. At the beginning of 2025 i took about $20k out of my 401k which had about $65k in it at the time. By merely withdrawing that money at that time in a lump sum, does that qualify for me meeting my RMD requirements for the year (1st year I took any cash out of it) without having to do anything else e.g. filing some kind of paperwork with the fed’s or such, etc? So the question is: will that $20k automatically qualify as an RMD distribution without havinf to do anything else? TY
Terry Says
Yes, that will certainly qualify as your RMD — unless you have a huge amount of other income. I hope you had them withhold taxes from that distribution! If not, you should work with your accountant to make a quarterly tax deposit.
Please read this column about taking RMDs. If you keep taking one-third of your money out, you’ll run out in the next four years! Time to do some financial planning.
