FAQ

What is an RMD?

A Required Minimum Distribution (RMD) is the amount of money required to be withdrawn from your retirement accounts (not including ROTH IRAs) once you reach age 72.

What Is An RMD?

A Required Minimum Distribution (RMD) is the amount of money required to be withdrawn from your retirement accounts (not including ROTH IRAs) once you reach age 72.

What Types Of Retirement Plans Require Minimum Distributions?

The RMD rules apply to all employer-sponsored retirement plans, including profit sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs, IRA-based plans such as SEPs, SAR-SEPs, SIMPLE IRAs and Roth 401(k) accounts. RMD rules do not apply to Roth IRAs while the owner is alive.

What Happens If A Person Does Not Take An RMD By The Required Deadline?

If an account owner fails to withdraw an RMD, fails to withdraw the full amount of the RMD, or fails to withdraw the RMD by the applicable deadline, the amount not withdrawn is taxed at 50%. It is critical you understand how RMDs work or the penalty is hefty! We are here to help if you have any questions.

What Is The Difference Between A Roth IRA And A Traditional IRA?

Traditional and Roth IRAs both provide the potential for tax-beneficial growth that can give your retirement savings an extra boost. The key difference between the two is the way your contributions & withdrawals are taxed. With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½ or prior to the account being opened for 5 years, whichever is later. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.

When Are Monthly Statements Produced And Mailed?

Statements are produced each month for accounts with financial activity, and quarterly for accounts with value, but no activity. LPL client statements are produced as of the last business day of each month and are generally mailed and made available in Account View within the first 7 calendar days of the following month.

Note: Actual delivery dates may vary from month-to-month depending on what day of the week the last business day falls and geographic location. Statements are produced by a print vendor and delivered by the USPS.

Do I Have The Option To Choose Whether I Receive My Statements In Paper Form Or Electronically?

Yes. Clients can choose whether they prefer to receive electronic or paper statements.

Note: LPL Financial does require all clients using Account View *2.0 to enroll in eDelivery.

What are Capital Gains?

Capital gains are profits made from the sale of real estate, investments, and personal property. The IRS classifies capital gains according to the length of time the taxpayer owned the property: Short-term capital gains refer to profits made from selling assets owned for one year or less, while profits earned on assets owned for more than one year are considered long-term capital gains.

Taxes: According to the IRS, taxpayers must report and pay taxes on all capital gains. The IRS treats short-term capital gains as regular income. Whereas Long-term capital gains generally have a lower tax rate than short-term gains, capped at 20 percent in the highest tax bracket.