Is the RMD age now 72?

Current law says you have to take your first RMD for the year in which you turn 72, although that first RMD can be delayed until April 1 of the following year. If you’re employed and contributing to your company’s retirement plan, RMDs do not apply to that particular account until you retire.

You must take your first required minimum distribution for the year in which you turn age 72 (70 ½ if you reach 70 ½ before January 1, 2020). If you reach 70½ in 2020, you have to take your first RMD by April 1 of the year after you reach the age of 72.

Can you take a RMD if you are still working at age 70?

Answer: No. All IRA owners (other than Roth IRA owners) must begin taking RMDs when they turn age 70 ½. This applies to traditional IRAs, as well as to employer-sponsored IRAs, like SEP and SIMPLE IRAs. Whether you are still working makes no difference. Question: If I am still working past age 70 ½, can I delay RMDs for my 401 (k)? Answer: Maybe.

When do IRAS have to start taking RMD’s?

Under IRC Section 408, and more specifically Treasury Regulation 1.408-8, Q&A 3, the required beginning date for IRAs is April 1 of the calendar year after the calendar year in which the IRA owner turns 70 ½. This is the RBD for all IRAs (other than Roth IRAs, which have no RMDs during the owners lifetime), including SEP IRAs and SIMPLE IRAs.

What happens if you miss the RMD deadline?

Be sure that you don’t miss your RMD deadline, because your tax penalty may be 50% of the amount not taken on time. If you’d like to reduce the affect of RMDs on your taxes, consider making a qualified charitable distribution (QCD).

Is there still working exception for 401k RMDs?

This provision is commonly known as the “still-working exception,” and is a common tool used by plan participants to delay the onset of RMDs in 401 (k) and other employer qualified plans. The Still-Working Exception allows individuals to defer distributions beyond age 70.5! The origins of the still-working exception are simple to understand.