By Sarah Brenner, JD
Director of Retirement Education
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Any IRA owner turning age 72 this year will have a required minimum distribution (RMD) due for 2021. But, depending on when they celebrate their 72nd birthday, the deadline for taking the 2021 RMD may be different.
Why are IRA owners who reach age 72 in the same year treated differently? The strange quirk in the rules is a product of both the SECURE Act and the CARES Act. The SECURE Act changed the age when RMDs must begin from age 70 ½ to age 72. The CARES Act eliminated any RMDs in 2020.
As a result of these two recent laws, we can divide IRA owners who reach age 72 in 2021 into two groups with different 2021 RMD deadlines.
Reaching Age 72 in 2021
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72nd Birthday:
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Before July 1, 2021
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On or After July 1, 2021
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2021 RMD Deadline
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December 31, 2021
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April 1, 2022
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The good news in all this RMD confusion is that after 2021, all IRA owners reaching age 72 will fall under the SECURE Act and the transition to age 72 will be complete. The dreaded ½ year RMD confusion that has tormented seniors for decades will come to an end.
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