Did you turn 72 in 2022? RMDs are still required by April 1, 2023! (Article)
Did you turn 72 in 2022? RMDs are still required by April 1, 2023!
In December 2022, the Secure Act 2.0 was signed into law. This law changed many things about retirement planning but one of the most talked about changes is the age in which people with retirement assets must start taking distributions from their retirement plans. This is referred to as at the Required Minimum Distribution (RMD) age.
For individuals who turn 72 in 2023 or later, the Act extended the age for RMDs to start. But, the act didn’t change anything for people who turned 72 prior to January 1, 2023. Most importantly, if you turned 72 in 2022, your RMD must be taken by April 1, 2023.
From the IRS:
IRAs: The RMD rules require traditional IRA, and SEP, SARSEP, and SIMPLE IRA account holders to begin taking distributions at age 72, even if they’re still working. Account holders reaching age 72 in 2022 must take their first RMD by April 1, 2023, and the second RMD by December 31, 2023, and each year thereafter.
Retirement Plans: In 401(k), 403(b) and 457(b) plans; profit-sharing and other defined contribution plans; and defined benefit plans, the first RMD is due by April 1 of the later of the year they reach age 72, or the participant is no longer employed (if allowed by the plan). A 5% owner of the employer must begin taking RMDs at age 72.
The April 1st date is quickly approaching. If you turned 72 last year, make sure you contact your financial institution to get the distribution started to make sure you don’t get penalized by the IRS for failing to take a distribution.
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