- normally plan account owners begin taking an RMD annually starting the year they reach 70 ½ or 72, depending on their birthdate and maybe the year they retire
- (SECURE) Act changed the age when individuals must begin taking withdrawals from their retirement accounts; if a person’s 70th birthday is July 1, 2019, or later, they do not have to take their first RMD until the year they reach age 72.
- (CARES) Act waived RMDs during 2020 so seniors and retirees, including beneficiaries with inherited accounts, were not required to take money out of IRAs and workplace retirement plans
- Roth IRAs do not require withdrawals until after the death of the owner
“Individuals who reached 70 ½ in 2019 or earlier, did not have an RMD due for 2020. For 2021, they will have an RMD due by Dec. 31, 2021. Individuals who did not reach age 70 ½ in 2019 will reach age 72 in 2021 will have their first RMD due by April 1, 2022, and their second RMD due by Dec. 31, 2022. To avoid having both amounts included in their income for the same year, the taxpayer can make the first withdrawal by Dec. 31, 2021, instead of waiting until April 1, 2022. After the first year, all RMDs must be made by Dec. 31.”