Required Minimum Distribution (RMD), Catch-Up 401(k) and IRA Contributions at Age 50 & Thanksgiving Hours

Required Minimum Distribution (RMD):

As a professional courtesy, we want to remind our clients who are over the age of 72 to contact their bank or investment advisor regarding the required minimum distributions that must be taken from an IRA, SEP, 401(k) or any other qualified tax deferred account. If you turn 73 in 2025 through 2032, the first RMD must be taken no later than April 1 of the year following the year you turn 73. After your initial RMD is taken you must take an annual RMD by December 31st each year.

We urge you to contact your investment advisor or bank before 12/31/26 if this applies to you so that you are in full compliance with the tax law. Most advisors, retirement planners and banks automatically handle this, but it is important to be sure you are taking the proper distributions.

Additional 401(k) and IRA Contribution at Age 50:

To help older employees save more for retirement in a 401(k) plan, catch-up contributions can be made during the calendar year in which you will turn 50 years old. The catch-up contribution amount for 2026 is $8,000 (total contribution limit is $32,500 for 2026).  The "super" catch-up contribution amount for 60-63 year-olds is $11,250 (total contribution limit is $35,750 for 2026).

The IRA contribution catch-up amount is $1,100 (total contribution limit is $8,600 in 2026).

You should contact your plan administrator to make these catch-up contributions.

In observance of Thanksgiving, our office will be closed Wednesday - Friday, November 25 – 27.

We wish you and your family a Happy Thanksgiving!