When to Take Your RMDs
May 5, 2022
You’ve probably heard about the SECURE Act of 2019, which changed how and when you will have to begin taking RMDs. Here are the main points you should know about:
- If you turned 70 ½ in 2020 or later, you should take your first RMD by April 1 of the year after you turn 72. All subsequent ones must be taken by December 31 of each year.1
- This generally applies to the original owner of a traditional IRA, SIMPLE IRA, SEP IRA, or a retirement plan, such as a 401(k) or 403(b). Roth IRAs do not have RMDs.1
- An account owner who delays the first RMD will have to take two distributions in one year.1
- Taking two RMDs in one year can have important tax implications.1
- To determine the best time to take your first RMD, compare your tax bills under two scenarios:
- taking the first RMD in the year you turn 72
- delaying until the following year and doubling up RMDs.1
We understand the RMD process can be confusing and overwhelming, and a mistake could be costly, especially with new legislation being debated about additional changes to the RMD start age.2
We are here to walk you through the entire process to understand which strategy could work best for you. Contact us to ask any questions or to schedule a complimentary consultation.
1. https://www.kiplinger.com/retirement/retirement-plans/required-minimum-distributions-rmds
2. https://www.investopedia.com/secure-2-0-definition-5225115