required minimum distribution | Ed Slott and Company, LLC

required minimum distribution

2022 RMDs and and the Required Beginning Date: Today's Slott Report Mailbag

Question: As we did 2 years ago, will we be able to skip taking a 2022 required minimum distribution (RMD) without penalties? Answer: Sorry, but RMDs are in full effect for 2022. The CARES Act waived RMDs in 2020, but that was a one-time deal. RMDs were back in play for 2021, and are still required for 2022 as well.

IRS Needs to Clarify Annual RMD Requirement under the New Regulations

Just when we thought we understood the new IRS regulations on required minimum distributions (RMDs), here comes more uncertainty. As we have reported, the IRS threw everyone a curveball with its interpretation of the 10-year payout rule under the SECURE Act in its proposed regulations issued on February 23. For most non-spouse beneficiaries, the SECURE Act replaced the life expectancy payout rule (also known as the “stretch IRA”) with a new 10-year rule. It is clear that the 10-year rule requires that the entire IRA account be emptied by December 31 of the 10th year following the year the IRA owner died.

Required Minimum Distributions (RMDs): Today's Slott Report Mailbag

Question: I am 75 years old and contributing to my company’s 401(K) plan. I have not taken an RMD from my 401(K) utilizing the “still-working exception.” I just retired on April 30, 2022. My question is: Do I have to take an RMD from my 401(K) for the current year 2022, or am I allowed to wait until next April 2023 to commence taking the first RMD from the 401(K) plan? John

RMD Withdrawals and the 10-Year Rule: Today's Slott Report Mailbag

Question: I’m 68 years old. I would like to start IRA withdrawals. What are the rules for withdrawing before my RMDs are required at age 72? Thanks, Bob

First Dollars Out Rule and the Still-Working Exception

For those who have 401(k)s or other employee retirement plans (but not SEP or SIMPLE plans), the required beginning date (RBD) for when required minimum distributions (RMDs) are to begin is the same as for IRA owners – April 1 of the year after a person turns 72. However, if the plan allows for the “still-working exception,” the RBD can potentially be delayed if a worker is still working for the company where they have the plan. (Also, the worker cannot own more than 5% of the company in the year they reach age 72.)

Required Minimum Distributions and Inherited IRAs: Today's Slott Report Mailbag

Question: Hello. I was reading the 2/28/22 edition of the Slott Report and noticed the section titled “Beneficiaries Hit w/Annual RMDs and the 10-Year Rule.” It was my understanding that starting 1/1/20, most non-spouse beneficiaries would have 10 years from the year of death to distribute the IRA, with no RMDs required.

Roth Conversions & RMDs: Today's Slott Report Mailbag

Question: I turn 72 this year. I am getting notices from my many IRA custodians that they want a waiver on file if I am NOT using my account for the RMD (i.e., I am taking it somewhere else). They make it sound like if I do not contact them, that they will automatically cut me a check for the required RMD amount.

QCDs and RMD Requirements of Inherited IRAs: Today's Slott Report Mailbag

Question: Hello. Thanks in advance for fielding my question. My mother died in 2021 in her 90's. She was using $100,000 of her traditional IRA RMD as a QCD. In order to fulfill her 2021 charitable commitments, I did a QCD after her death. Because I am not 70 ½ yet, my CPA tells me I need to include the IRA withdrawal in my income and take a charitable deduction because the assets had already moved to my inherited IRA account. Is this correct? Is there an exception I am missing here? Thanks!

What to Do if You Missed Your 2021 RMD

Did you take your RMD from your IRA for 2021? Hopefully, the answer is yes because for most IRA owners and beneficiaries the deadline for taking a 2021 RMD was December 31, 2021. There is an exception. If you reached age 72 in 2021, you still have time. Your deadline for taking your 2021 RMD from your IRA is April 1, 2022.

Your First RMD and SEP IRAs: Today's Slott Report Mailbag

Question: Hi, I turn 72 this year and have to take my first required minimum distribution (RMD). I am also in the process of converting most of my IRA into a Roth IRA. I know I have to take my RMD first before the conversion. Since this is my first year of RMDs, I know one of the options is to delay the RMD until April of next year.

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