Spouse was born in 1952. At the end of year 2024, spouse was 72 years old. Internal Revenue Service (IRS) rules say an individual needs to start taking Required Minimum Distributions (RMD) in the year that they turn 73. That woud be year 2025 for my spouse. However, Etrade keeps messaging that a RMD for year 2024 is needed, and do it by April 1st, 2025, or face a big penalty. I have talked to them 4 or 5 times to get this corrected. They have the correct year of birth (1952) on the account. They agree that the account is not required to make a RMD for 2024. Yet they keep posting this false message on the account page.
I hate to pay the fee to transfer the account over to another broker. But I am tired of this message, and a little fearful if the IRS gets involved. I think my next step is to just post my adverse experience with them, maybe report them to FINRA or SEC or find a lawsuit-happy lawyer.
Anyone else that turned 72 in 2024 having this trouble with them?
I too was born in 1952, and was 72 at the end of 2024. And I have to take my first RMD this year. As it happens, I already did. I took it in the year that I will turn 73, based on the balance of my IRA at the end of the previous year. That is how the law was written.
And my broker, which is not Etrade, provided me with the same information about how much I had to withdraw. I chose to take it all in January.
Yeah, bogus RMD notices. I have gotten them from our current and former brokers.
In January 2022, I took my first and last RMD. Yet 2025 is the first year I have not received an RMD notice. Maybe they finally got the idea that I don’t need to take any.
My first notice, that was valid, said 2021 but it was referring to the balance date, as @RHinCT mentioned, 12/31/2021. The statement was something like: “based on the 2021 balance” with nothing else date wise.
If it was me, I would just do the 2025 RMD and get on with life.