RMDs are Back! (Article)
RMDs are Back!
There weren’t a lot of good things that happened in 2020 but the temporary suspension of Required Minimum Distributions for people over age 72 was one of them. Unfortunately, the suspension was not continued for 2021. Therefore, as we near the end of the year it is important to make your plans to ensure you take the proper amount out of your accounts. Failure to do so will result in a 50% penalty on any required, but not distributed amount.
For an investor who turned 72 in 2021, the actual distribution isn’t due until April 1, 2022. But, that investor will also need to take a 2022 distribution by December 31, 2022; postponing the first distribution until April 1 will result in having two distributions in 2022. Because this may have an impact on your tax bracket, you should talk to a tax advisor to determine if you should take your 2021 distribution before the end of this year
For any investor over age 72, your RMD is due by December 31 each year.
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