When Must You Take Your First Required Minimum Distribution?
By Sarah Brenner, IRA Technical Expert
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If you have an IRA, you probably are aware that when you reach retirement, there are rules requiring annual distributions. You may have questions as to when these distributions must begin. The rules can be confusing! Here is what you need to know about when you must start taking required minimum distributions (RMDs) from your IRA.
If you have a traditional IRA (including a SEP or a SIMPLE IRA), the year you reach age 70 ½ is the first year for which you must take an RMD. You have until April 1 of the year following the year you attain age 70 ½ to take your first RMD. That date is called your Required Beginning Date. The deadline for each year after your first distribution calendar year is December 31. If you delay taking your first RMD until April 1 of the year following the year you attain age 70 ½, you will need to take two distributions in that second distribution calendar year. You will need to take your RMD for your first distribution calendar year by April 1 and the RMD for your second distribution calendar year by December 31. You are not required to take RMDs from your Roth IRA during your lifetime. While RMDs from company plans may sometimes be delayed past the year you attain age 70 ½, there are no such exceptions for IRAs.
One of the most confusing aspects of the RMD rules for IRA owners is determining exactly which year for which RMDs must begin. It may be either the year you attain age 70 or the year you attain age 71. It depends on when your birthday falls during the calendar year. If your 70th birthday falls between January and June, the year of your 70th birthday will be your first distribution calendar year. If your birthday falls between July and December, the year of your 71st birthday will be your first distribution calendar year. You will use the age you attain on your birthday in your first distribution calendar year to calculate your first RMD. Consider the following examples:
Example: Bruce’s 70th birthday is January 15, 2015. He attains age 70 ½ in 2015. He must take his first RMD from his IRA for 2015. The deadline for taking his 2015 RMD is April 1, 2016. He will use age 70 to calculate his 2015 RMD.
Example: Carmen’s 70th birthday is July 15, 2015. She attains age 70 ½ in 2016. She must take her first RMD from her IRA for 2016. The deadline for taking her 2016 RMD is April 1, 2017. She will use age 71 to calculate her 2016 RMD.