1 The required beginning date for RMDs is age 72 for those born after June 30, 1949. You may defer your first RMD until April 1 in the year after you turn age 72, but then you’d be required to take two distributions in that year. Failure to take all or part of an RMD results in a 50% additional tax applicable to the amount of the RMD not withdrawn. Consult your tax advisor for more information on your personal circumstances.
2 In order for a withdrawal to be considered a “qualified distribution,” at least five years must have elapsed from the first day of the year in which you made your initial contribution or Roth conversion, if earlier, and you must be age 59 ½ or older, disabled or deceased. If you take a non-qualified distribution, any investment returns are subject to regular income tax plus a 10% additional federal tax if you are under the age of 59 ½, unless an exception applies.
3 You can begin receiving Social Security retirement benefits as early as age 62, but the benefit amount you would receive is less than the amount you would receive if you were to wait until your full retirement age to begin collecting. The year and month you reach full retirement age — when you become eligible for unreduced Social Security retirement benefits — depends on the year you were born. To find your full retirement age, go to https://www.ssa.gov/benefits/retirement/planner/ageincrease.html.
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
This material should be regarded as educational information on Social Security and is not intended to provide specific advice. If you have questions regarding your particular situation, you should contact the Social Security Administration and/or your legal advisors.