April 1 deadline to start taking your RMDs is no joke

April 1 deadline to start taking your RMDs is no jokeIRA owners of a certain age are facing a strict deadline.(Photo: Getty Images)If you turned 70½ last year and you have an Individual Retirement Account, you’ve most likely got until Friday to take your first required minimum distribution. If you don’t, you could be looking at a fat tax penalty.According to the Internal Revenue Service:The April 1 deadline applies to owners of traditional (including SEP and SIMPLE) IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans.The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, a taxpayer who turned 70½ in 2015 (born after June 30, 1944, and before July 1, 1945) and receives the first required distribution (for 2015) on April 1, 2016, for example, must still receive the second RMD by Dec. 31, 2016. Affected taxpayers who turned 70½ during 2015 must figure the RMD for the first year using the life expectancy as of their birthday in 2015 and their account balance on Dec. 31, 2014. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Worksheets and life expectancy tables for making this computation can be found in the appendices to Publication 590-B.USA TODAYAre you required to take an IRA minimum distribution? Decoding RMDsFor more information on RMDs, including answers to frequently asked questions, go to IRS.gov.

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