"RDM election" can refer to different types of elections, depending on the context. Here's what you need to know about the most common interpretations:
1. Required Minimum Distribution (RMD) Elections for Retirement Accounts
If you're referring to financial planning, RDM stands for Required Minimum Distribution. These are annual withdrawals you must take from most tax-deferred retirement accounts (like Traditional IRAs, 401(k)s, etc.) once you reach a certain age. Failure to do so can result in significant penalties.
Here's what's important about RMD elections:
* Starting Age: The SECURE 2.0 Act increased the age for starting RMDs.
* If you turned 72 in 2022 or earlier, you must continue taking RMDs as scheduled.
* If you were born after December 31, 1950, and before January 1, 1960, the age is 73.
* Beginning in 2033, the age will increase to 75.
* First RMD Deferral: For your very first RMD, you have the option to defer it until April 1 of the following calendar year. However, if you defer, you'll have to take two RMDs in that following year, which could increase your tax liability.
* Subsequent RMDs: All RMDs after your first must be taken by December 31 of each year.
* Calculation: Your RMD amount is generally calculated by dividing your account balance from the end of the previous year by a life expectancy factor provided by the IRS (usually the Uniform Lifetime Table).
* Spousal Beneficiaries: Special rules apply to surviving spouses who inherit retirement accounts.
* A surviving spouse who is the sole beneficiary can elect to be treated as the owner of the IRA.
* Since 2024, the SECURE 2.0 Act allows surviving spouses to elect to be treated as the deceased account owner for RMD purposes, potentially delaying RMDs or allowing for the use of more favorable life expectancy tables. This election is irrevocable.
* Penalties: Failing to withdraw your RMD by the deadline can result in a penalty. The SECURE 2.0 Act reduced this penalty to 25%, or 10% if corrected in a timely manner (typically within two years).
* Roth Accounts: RMD rules do not apply to Roth IRAs during the owner's lifetime. Beginning in 2024, RMDs are also eliminated for qualified employer Roth plan accounts (e.g., Roth 401(k)s).
* How to Take an RMD: You typically need to contact your financial institution or advisor to request your RMD. Some requests can be made by phone, while others require written forms. You may have choices regarding tax withholding for your distribution.
* Consult a Professional: It's highly recommended to consult a tax or financial advisor when making decisions about your RMDs, as your choices can affect your taxes.
2. RDM in Political or Organizational Elections
RDM can also refer to elections within specific political parties or organizations. For example:
* Democratic Renewal of Macedonia (RDM): This refers to a political party in North Macedonia. They have published lists of candidates who will be part of opposition lists led by the SDSM.
* RDM Corporation: This company has announced results for the election of its Board of Directors at its Annual General Meeting of Shareholders.
* oneM2M RDM Vice-Chair: There are open positions for RDM VC (Vice-Chair) in oneM2M, an organization that publishes standards for IoT.
* RDM Graduate Studies Committee: This committee has members who are elected for 1 or 2 years by the RDM Student Forum.
In the context of general elections, RDM Lawyers provided information on employee voting rights in Canadian federal elections, emphasizing that employers must ensure employees have at least three consecutive hours to vote on Election Day.
To understand "RDM election" fully, it's crucial to specify the context you're interested in.