Required Minimum Distribution (RMD) Update for 2022

Don’t Forget to Take Your RMDs

Hey folks, Kevin Molen with Molen & Associates here. I want to give you a quick update regarding a specific topic that some people are asking questions about, that really should be clear-cut. So, let’s set the record straight – the Cares Act, which was implemented in early 2020 allowed us to avoid taking what’s called a required minimum distribution, colloquially we will refer to it as an RMD.

Now RMDs for 2020 were actually suspended due to COVID. Another area that some people aren’t completely up to date on is the secure act that was passed just the prior actually which changed the RMD age to be increased from 70 and a half to age 72.  

Along with that, they actually implemented some additional changes as well for after you pass away – the kiddos or other heirs that receive these accounts actually have to take that money out in a more accelerated fashion now.

So, several changes there but my point is I want to make sure we clarify that required minimum distributions or RMDs were back in effect for 2021 and now for 2022. So, if you’re required to take a distribution based on having attained the necessary age: 2020 we got a pass. We no longer have that pass. Now the money has to be taken out of the account. The only other thing to consider in regards to this is when to take it, how much to take, and how much to have in federal income tax withholding. As those questions arrive they really need to be tailored to your specific circumstance. Make sure and give us a call at 281-440-6279 and we’d be happy to help you.

Don’t forget the penalty for not taking a required minimum distribution is up to 50% of the required distributed amount. If you miss it, you have to end up forking over a ton of money to the government. Let’s not go that route. Make sure you get this done right. If you have any questions, reach out to us you can find us at www.molentax.com

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Never Too Young To Learn About Taxes

Taxes is a topic that affects us young and old – whether we are worrying about how much taxes to pay if you win the lottery or buying your first item as a kid for $10.00 and realizing sales tax is a thing and it truly costs more than $10.00. While taxes do serve a...

Ten Proven Strategies For Saving Big Money As An S Corp Owner

Are you tired of paying massive amounts of money to the government? Strategy is essential when it comes to anything in life, but especially when it comes to saving money. Many different techniques can be used when it comes to slashing taxes as an S-Corp owner; each...

Change Independent Contractors into Employees Trouble-Free

Independent contractors are a vital part of the American workforce. They work for themselves, usually providing services to other businesses. While this setup offers many advantages to both the contractor and the hiring business, it can also create tax problems.   You...

Is retirement the same thing it used to be?

The modern concept of retirement has only been around for about 100 years. Though relatively new, what retirement looks like and how people are planning for retirement has changed significantly in the last few decades. With roughly 9000 Americans reaching the average...

Cash in: Beat The Taxman With 11 Tax-free Income Breaks

No one likes paying taxes, but what if there were a way to reduce the taxes you owe each year? Luckily, several tax-free income breaks can help lower your tax bill. Here are 11 of the best ways to beat the taxman. Break 1: accumulation and withdrawals of tax-free...

I owe to the IRS, what do I do now?

We know owing taxes can be a headache, especially if you don’t have a CPA or tax advisor to walk you through the process. If you fail to pay your taxes, in most cases you will only face interest or penalties, rather than going to prison for tax evasion. Even if you do...

Credit, Debt and Personal Finances 101

In an era of credit cards, services that allow you to “buy now, pay later”, and access to loans at your fingertips, it is easy to indulge in lifestyle you can’t necessarily afford on your budget. Before your fall too deep down the rabbit hole – or if you may already...

Buying an Electric Vehicle? Know These Tax Law Changes

 Are you thinking of buying an electric vehicle or a plug-in hybrid and taking advantage of the Electric Vehicle Tax Law Changes? If so, you have much to consider—thanks to the newlyenacted Inflation Reduction Act and Electric Vehicle Tax Law Changes. Let’s get...

Dealing With The New 62.5 Cents Mileage Rate

Due to rising gas prices, the Internal Revenue Service (IRS) announced an increase in the standard mileage rate for business travel. As a result, small businesses that make use of the standard mile rates can deduct 62.5 cents per mile for business mileage.  This is...

FAQ on Student Loan Cancellation

What is the Student Loan Cancellation? Last month, President Biden laid out a plan to cancel up to $20,000 in federal student loan debt per borrower. Beneath this seemingly simple plan comes quite a few questions about how, exactly, it will work. Naturally, borrowers...

Request an Appointment Today

12 + 3 =

Call us at

Pin It on Pinterest

Share This