What Is Your Required Beginning Date?

What Is Your Required Beginning Date?

If you are an IRA owner, you must begin taking required minimum distributions (RMDs) from your IRA. For your very first RMD only, the IRS gives you an option. You have until April 1st of the year following the year you turn 70½ to take your first RMD. That is your Required Beginning Date (RBD).

Keep in mind that delaying your very first RMD is an option, but if you choose to delay until the year following the year you turn 70½, you still have to take your regular RMD for that year. Yes, this means if you delay your first, you will need to take two RMDs that year.

Example: you turn 70½ in 2019 and delay taking your first RMD until February 1, 2020. You will still have to take your regular RMD by December 31, 2020.

The regular RMD deadline is December 31st each year. This deadline applies to IRA beneficiaries as well, including Roth IRA beneficiaries. Even though Roth IRA owners don’t have RMDs, Roth IRA beneficiaries do.

Source: www.irs.gov

More Updates

CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

Read More »

Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

Read More »

Tapping Into Retirement Accounts If Not Directly Impacted By COVID-19

The recently-­‐enacted Coronavirus Aid, Relief, and  Economic Security Act (CARES  Act) signed by President Trump  on  March  27, 2020, allows  “qualified individuals” to take up  to  $100,000 of  penalty-­‐free IRA and company plan withdrawals during 2020. “Qualified individuals” include those who are (or whose family members are) sickened by the virus or who have virus-­‐related

Read More »
Scroll to Top