Required Minimum Distributions (RMDs)



Tax deferred retirement accounts, such as a traditional IRA account or a 401k plan, require distributions to be taken in the year in which the taxpayer turns 70.5 years.


The following outlines the requirements based on your specific situation.


When must the taxpayer take their first RMD?

By April 1 of the year following the year in which you turn 70.5, regardless of whether you are still employed.


Defined Contribution Plans (401k, etc.) - April 1 of the year following the later of the year the taxpayer turns 70.5 or the year the taxpayer retires (if allowed by your plan). If the taxpayer is a 5% owner, RMDs must start by April 1 of the year following the year the taxpayer turns 70.5.


When does the taxpayer reach age 70.5?

On the date six calendar months after the date of the taxpayers 70th birthday. For example, taxpayers birthday is June 30, 2019, they reach age 70.5 on December 30, 2019, first RMD by April 1, 2020.


What is the deadline for subsequent RMDs after the first?

By December 31st each year, beginning with the calendar containing your required beginning date. For example, taxpayers is age 70.5 on July 15, 2019, first RMD by April 1, 2020, second RMD by December 31, 2020, third RMD by December 31, 2021.


How is a RMD calculated?

Dividing the adjusted market value of the account as of December 31 of the preceding year by the distribution period corresponding to the taxpayers age in the Uniform Lifetime Table. If the spouse is the sole beneficiary and is more than 10 years younger, the taxpayer will use the Joint Life and Last Survivor Expectancy Table.


Defined Contribution Plans - the plan sponsor/administrator should calculate the RDM.


How does having multiple accounts effect RMDs?

Calculate the RMD for each IRA separately each year. The amounts can be aggregated and withdrawn from one account or a portion from each account.


Defined Contribution Plans - calculate and withdraw RMDs from each plan separately. With the exception of 403b accounts which can be aggregated.


Can more than the RMD be withdrawn?

Yes, more can always be withdrawn. Excess withdraws in one year cannot apply to future years RMDs.


Can more than one withdraw be made per year to satisfy the RMD?

Yes, any number of withdraws can be made as long as the total minimum has been withdrawn by the deadline.


What happens if the RMD is not taken?

The taxpayer is subject to an additional tax equal to 50% of the undistributed RMD.



There are no RMD requirements for Roth IRAs while the owner is alive. Designated Roth accounts are subject to RMD rules.


Additional information can be found on the IRS website... https://www.irs.gov/publications/p590b


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