FINRA Offers What You Need to Know About Required Minimum Distributions in Traditional IRAs

WASHINGTON–(BUSINESS WIRE)–The Financial Industry Regulatory Authority (FINRA) today issued an Investor
Alert
with answers to 10 commonly asked questions about required
minimum distributions (RMDs) – the smallest amount you can withdraw each
year from a traditional retirement savings plan once you’ve reached the
mandatory age for making withdrawals, usually 70 ½.

“RMD rules are complex, and if this is the first time you are taking a
distribution, you may want to consult with a tax professional,” said
Gerri Walsh, Senior VP of Investor Education at FINRA. “Our alert is
designed to provide basic information and answer a number of vital
questions about RMDs. Making a mistake can result in tax penalties, so
it’s important to be informed.”

The alert focuses on RMDs from traditional IRAs because these are the
type of retirement accounts where individuals are directly responsible
for computing required minimum distributions. It defines RMDs, explains
how they are calculated, and answers questions about missed withdrawals,
taking out more than the minimum amount, managing multiple accounts,
what happens if the account owner or IRA owner dies before RMDs have
begun, and a number of other “what if” scenarios. The advisory also
provides links to additional information from the Internal Revenue
Service.

To receive the latest Investor Alerts and other important investor
information from FINRA, sign up for Investor
News
.

Investors can obtain more information about, and the disciplinary record
of, any FINRA-registered broker or brokerage firm by using FINRA’s
BrokerCheck. FINRA makes BrokerCheck available at no charge. In 2015,
members of the public used this service to conduct 71 million reviews of
broker or firm records. Investors can access BrokerCheck at www.finra.org/brokercheck or
by calling (800) 289-9999. Investors may find copies of this
disciplinary action as well as other disciplinary documents in FINRA’s
Disciplinary Actions Online database
. Investors can also call FINRA’s
Securities Helpline for Seniors
 at (844) 57-HELPS for
assistance or to raise concerns about issues they have with their
brokerage accounts and investments.

FINRA, the Financial Industry Regulatory Authority, is the largest
independent regulator for all securities firms doing business in the
United States. FINRA is dedicated to investor protection and market
integrity through effective and efficient regulation and complementary
compliance and technology-based services. FINRA touches virtually every
aspect of the securities business – from registering and educating all
industry participants to examining securities firms, writing rules,
enforcing those rules and the federal securities laws, and informing and
educating the investing public. In addition, FINRA provides surveillance
and other regulatory services for equities and options markets, as well
as trade reporting and other industry utilities. FINRA also administers
the largest dispute resolution forum for investors and firms. For more
information, please visit www.finra.org.

Contacts

Financial Industry Regulatory Authority (FINRA)
Ray
Pellecchia
, 212-858-4387