Updated Saturday, December 20, 2014 as of 10:49 AM ET

Required Minimum Distributions for Roth IRAs?

This one’s simple. If you have $100,000 or less - across all of your retirement plans combined - you would be exempt from required minimum distributions. Failing to take the proper RMD amount comes with one of the stiffest retirement account penalties there is, a 50% penalty on any shortfall.

Get access to this article and thousands more...

All On Wall Street articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Comments (8)
Consider this all Caps? I will want to AMEND ALL my personal tax returns since 2009! I can't read any more of the above past the second paragraph (yet)!
Posted by Bruce B | Wednesday, March 05 2014 at 4:21PM ET
Add your comments here.
Posted by fred j | Wednesday, March 05 2014 at 5:21PM ET
I thought more about the topic and believe if Congress really approved this they would also likely Grandfather Existing Roth's to not require RMDs. (I also realize tax returns have a statute of limitations for amending.) I have paid a high price for the Roth IRA's I have in place. Back to the topic - thanks Jeffrey!
Posted by Bruce B | Wednesday, March 05 2014 at 7:21PM ET
I continue to be amazed by this President's lack of understanding and downright stupidity. It further enforces my belief that no one should be allowed to run for President without actually having held a real private-sector job as a qualification!!!!

GWS
Posted by Glenn S | Thursday, March 06 2014 at 11:07AM ET
Some of those proposals make us, the financial planners, look really bad. Can you imagine at our suggestions our clients pay the tax & convert to Roth, only to find out later the rule changed again? The lawsuit, lots of them, are waiting to happen. Whose fault is it?

In addition, practically speaking how are you doing to tax the 401k w/d again in the future? If you pay 28% tax on it now, when you w/d, do you have to pay the tax again? Yes, one can argue maybe a separation at the account set up. However, can you imagine once again the paperwork required & new software updates to this change?

Why can't the President just leave people's retirement account alone? If he truly stands for the low-income class people, he can ask his Hollywood friends to start to adopt poor families. They all own huge mansions & servants. Wouldn't that be a new change?
Posted by rose s | Thursday, March 06 2014 at 12:42PM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Already a subscriber? Log in here