Changes to Required Minimum Distributions
(RMDs)
Required minimum distribution (RMD) is the minimum amount you must withdraw from your Traditional IRA, SEP IRA, SIMPLE IRA, or retirement plan (including Roth 401(k)) each year. RMDs do not apply to Roth IRAs.
Required Minimum Distributions (RMDs) NOT Required for Tax Year 2020
Due to the Coronavirus (COVID-19), required minimum distributions (RMDs) are NOT required to be taken for tax year 2020. If you have already taken an RMD, you can return it by the LATER of:
-
60 days from the date of distribution, or
-
August 31, 2020
Required Minimum Distribution (RMD) Age Increased From 70 ½ to 72
If you reach age 70 ½ in year 2020 or later, you now have until April 1 of the year AFTER you turn age 72 to take your first RMD.
Special rules for certain types of accounts may apply to individuals who are not yet retired and also to individuals who have died.
Failure to timely take RMDs may result in a 50% excise tax!
