RMD

[21norman02]

What is the current required timing for taking the RMD...when it is the initial withdrawal and you turned 70 in 2020?  Does it need to be taken in 2021 or by the tax filing date for 2021, i.e. April 15, 2022?

[Critter-3]

 see other answer

[DoninGA]

The rules for taking an RMD have changed.

Go to this IRS website for RMD information - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-di...

Beginning date for your first required minimum distribution

• IRAs (including SEPs and SIMPLE IRAs)
  • April 1 of the year following the calendar year in which you reach age 70½, if you were born before July 1, 1949.
  • April 1 of the year following the calendar year in which you reach age 72, if you were born  after Jun 30, 1949.
• 401(k), profit-sharing, 403(b), or other defined contribution plan
  Generally, April 1 following the later of the calendar year in which you:
  • reach age 72 (age 70½ if born before July 1, 1949), or
  • retire (if your plan allows this).

See the chart comparing IRA and defined contribution plan RMDs.

[Critter-3]

@DoninGA 

Good catch ... got to wake up. 

[Mike9241]

deferring to the latest date possible is not always the best option from an income tax standpoint. 

After the first RMD, you must take subsequent RMDs by December 31 of each year beginning with the calendar year containing your required beginning date.

say you're born before 7/1/1949 so you defer to 4/1 of the year following the year you turn 70-1/2. say that's 2021. then you must take a second RMD by 12/31/2021

the same rule applies to those born after 6/30/1949

[Critter-3]

My standard advice to my clients who do NOT need the RMD to live on is to set up an auto draw for sometime mid December so the money can be kept in the account as long as possible to earn more dividends/cap gains.  But do not set the date for the last couple of days in December just in case the broker slips up then there is still time to fix it ... remember the holidays can delay things and the failure to take the RMD penalty of 50% of the amount that should have been withdrawn is wicked and should always be avoided.

[21norman02]

So if I was born in February 1950, I would not have to start RMD until I turned 72 in 2022...and then would have until April 1st of 2023 to make withdrawal...correct??

[DoninGA]

---

@21norman02 wrote:

So if I was born in February 1950, I would not have to start RMD until I turned 72 in 2022...and then would have until April 1st of 2023 to make withdrawal...correct??

---

That is correct.

[macuser_22 · Accepted solution]

---

@DoninGA wrote:

---

@21norman02 wrote:

So if I was born in February 1950, I would not have to start RMD until I turned 72 in 2022...and then would have until April 1st of 2023 to make withdrawal...correct??

---

That is correct.

---

And that would only apply to your first RMD.   It would be the 2022 RMD deferred to Apr 1, 2023, but you still must take another 2023 RMD before the end of 2023.