Yes! You can use AI to fill out Empower Required Minimum Distribution Request Form

The RMD age varies (70.5, 72, or 73) based on an individual's birth date, and using the wrong age is a frequent error. This can cause a participant to take a distribution too late, resulting in a significant IRS excise tax on the amount that should have been withdrawn. To prevent this, carefully match your birth date to the specific age brackets defined by the IRS and plan documents before initiating a withdrawal.

Participants can defer their very first RMD to April 1 of the year after they reach RMD age, but many forget this requires them to take a second RMD by December 31 of that same year. Missing this second distribution deadline results in a failure to satisfy the RMD, triggering a substantial tax penalty from the IRS. To avoid this, either take your first RMD in the year you become eligible or set a clear calendar reminder for the December 31 deadline if you choose to defer.

The rules for beneficiary distributions are complex, depending on the beneficiary's relationship to the decedent, the date of death (pre- or post-SECURE Act), and whether the original participant had started RMDs. A beneficiary might mistakenly use the 'life expectancy' rule when the '10-year rule' applies, leading to an incorrect withdrawal schedule and potential penalties. Beneficiaries must carefully identify their category (e.g., Eligible Designated Beneficiary) and the participant's date of death to determine the correct payout timeline.

RMD calculations require a specific IRS Life Expectancy table (Uniform Lifetime, Joint Life, or Single Life) based on the individual's status. A common mistake is using the standard Uniform Lifetime table when a different one is required, such as the Single Life table for a beneficiary. This error leads to an incorrect RMD amount, causing either an under-distribution with penalties or an unnecessary over-distribution and higher tax bill.

As of 2024, Roth 401(k) assets are excluded from RMD calculations, and withdrawals from Roth sources do not satisfy an RMD obligation. Individuals may mistakenly include their Roth balance in the total account value, leading to an inflated and incorrect RMD calculation. To avoid this, ensure your calculation is based solely on the prior year-end balance of your pre-tax retirement accounts and take the withdrawal from those same sources.

If a participant passes away after starting RMDs but before taking their full distribution for that year, the beneficiary is responsible for withdrawing the remaining amount. Beneficiaries often overlook this immediate obligation, focusing only on future distributions. Failing to take the decedent's final RMD by December 31 of the year of death results in a missed RMD and is subject to IRS penalties.

Distribution request forms often default to a standard federal tax withholding rate, such as 10%. Many people fill out the form quickly and accept this default without considering their personal tax situation, which can lead to a large, unexpected tax bill or penalty at year-end. Always review the tax withholding section and elect a specific percentage or dollar amount that aligns with your overall tax strategy. AI form-fillers like Instafill.ai can highlight these fields to ensure they are not overlooked.

The process notes that while participants can request RMDs online, beneficiaries and alternate payees are required to submit a distribution request form. These individuals often try to use the online portal out of habit, leading to failed attempts and processing delays. This can cause a missed deadline and significant penalties, so beneficiaries must obtain the correct form. If the form is a non-fillable PDF, tools like Instafill.ai can convert it into an easy-to-use, fillable version.

Unlike other employees, individuals who own 5% or more of the company must begin taking RMDs when they reach RMD age, regardless of their employment status. These owners often mistakenly believe they can delay RMDs until they retire, just like non-owners. This misunderstanding leads to missed RMDs and substantial IRS penalties for each year the distribution was not taken.

The Joint Life and Last Survivor Table, which can result in a lower RMD, has strict eligibility: the spouse must be the sole primary beneficiary and more than 10 years younger. Participants may select this option without meeting both criteria, for instance, if they have also named a child as a primary beneficiary. Using this table incorrectly results in an under-calculated RMD and an IRS penalty for the shortfall.