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VIEWpoint Issue 1 | 2023
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The Internal Revenue Service has reminded retirees about Required Minimum Distributions (RMDs). RMDs are normally made by the end of the year and retirees born before July 1, 1948 must take distributions from their IRAs by December 31, 2018.
Those who reached age 70-1/2 during 2018 are covered by a special rule allowing them to wait until April 1, 2019, to take their first RMDs. For instance, those born after June 30, 1947, and before July 1, 1948, are eligible for this special rule for 2018. If they wait until early 2019 to take that first RMD (up until April 1, 2019), it can be counted toward their 2018 RMD, but is still taxable in 2019. The special April 1 deadline only applies to the RMD for the first year. For all subsequent years, the RMD must be made by December 31st
Further, the RMD for 2018 is based on the taxpayer’s life expectancy on December 31, 2018, and their account balance on December 31, 2017. RMD rules are mandatory for all owners of traditional, Simplified Employee Pension (SEP), Savings Incentive Match Plans for Employees (SIMPLE) IRAs and participants in workplace retirement plans; however, some people in workplace plans can wait longer to receive their RMDs.
If you have questions about the tax implications of your RMD, contact the tax advisors at Doeren Mayhew.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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