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  1. #11
    Join Date
    Oct 2006
    Posts
    15,932

    Default Re: Just Checkintg on Rmd

    Quote Quoting budwad
    View Post
    Thank you.

    I assume that the same timeline applies, that in the year you reach 72 you take the value of the retirement accounts on December 31, of the year before and take the money out by April 1st in the year you reach 72?

    All my retirement accounts are self-directed.
    You have that a bit wrong Bud. For the first time RMD you have until April of the year AFTER you turn 72 (was 70 1/2). You would then have to take another RMD by December of that same year for the current year.

    Example: Someone who turns 72 on 12/1/2021, would have until April of 2022 to take their RMD for 2021, and would then have until 12/31/2022 to take their RMD for 2022. Of course, they are not required to wait until April to take their RMD for 2021. They can take it in 2021 if they want to.

  2. #12
    Join Date
    Oct 2014
    Posts
    7,615

    Default Re: Just Checkintg on Rmd

    Quote Quoting llworking
    View Post
    I really did not know that. It has simply never come up in any of my continuing ed and I have never had a client in that circumstance either. How do retirees know that their employer's or former employer's plan requires distributions earlier than the RMD?
    They should read their plan to know what the rules are. And, of course, some employers will remind employees of the RMD.

    Quote Quoting llworking
    View Post
    Are there tax ramifications if the employer plan requires earlier distributions and they don't take them because they don't know or forgot?
    The tax on excess accumulation only kicks in after the RMD date.

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