Required Minimum Distributions

Forum|Forum|5 years ago
December 28, 2020
1 reply
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I'm trying to understand when I need to calculate and make my first Required Minimum Distributions from my retirement accounts. I was born August 10, 1949. I have a 401K, an IRA and a Sep IRA. My understanding of the confusing IRS documentation, is that I need to calculate the RMDs based on the amounts in my accounts this year, on 12/31/2020, and I need to make the withdrawals by April 1, 2022, not 2021. Is that correct? Is there any difference in making the RMDs for the 401K, as opposed to the IRAs? Thanks, Bob O'Connell.

Not A Product Question

VolvoGirl

Level 15

Yes. For the first year RMD (you turn 72 in Aug 2021) you have until the next April 1 to take it. That's only the first time. But then you will still need to take the 2022 RMD by Dec 31, 2022. So you will have to take 2 RMDs in 2022.

And you have to take each kind of RMD separately. So you have to figure and take the 401K RMD and a IRA RMD. You need to take from both.

fanfare

Level 15

You will take two RMDs in 2022, only if you delay to take your 2021 RMD until after Dec 31, 2021.

The grace period is for persons who are really confused, but now you are educated.

NCperson

Level 15

while you have the option of taking that first RMD in 2022, as stated above that will mean two RMD;s that year.

based on your own tax situation, it may be worth taking the 1st RMD by Dec, 2021 as the two RMD;s may push you into a higher tax bracket in 2022 - so it would be less tax to take one RMD each year.... depends on your situation.