Federal Tax, Individual Tax, Tax

RMD Deadline Dec. 31

Retirees: You may need to take required minimum distributions (RMDs) from retirement plans and IRAs by Dec. 31. Generally, RMDs are amounts that must be withdrawn annually from most retirement plan accounts and IRAs once an account owner turns 72 (there are exceptions). Prior law required individuals to start taking RMDs when they reached 70½. So, individuals who turned 70½ on or before June 30, 2019, must take an RMD by Dec. 31, 2021. Individuals who turn 72 in 2021 must take their first RMD by April 1, 2022. Not taking a required distribution, or not withdrawing enough, could mean a 50% tax on the amount not distributed. Click here to learn more from the IRS. For questions, contact Cg.
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