Advertisement
IRAs

RMDs: When Do I Have to Take One?

Required minimum distributions are a fact of life for traditional IRAs. The rules are complex and they've recently changed.

The rules on when retirees must take required minimum distributions (RMDs) changed as of Jan. 1, 2020, thanks to the SECURE Act, which was signed into law on Dec. 20, 2019.

Under the old rules, anyone with money in an IRA was forced to take RMDs after turning age 70½. Those rules still apply to those who had turned 70½ by the end of 2019.

Advertisement - Article continues below

For anyone who hadn't turned 70½ by then, the SECURE Act now delays those required distributions until after reaching age 72.

Here are a few key points to understand:

  • If you were born before July 1, 1948, you were already taking RMDs before the SECURE Act went into effect, and that continues unchanged going forward.
  • If you were born on July 1, 1948, through June 30, 1949, you turned 70½ in 2019, and you fall under the old rules. Your first RMD is due by April 1, 2020 (you get a little extra time to take your very first RMD). Your second one is due by Dec. 31, 2020. And then you continue to take RMDs by the end of each year going forward.
  • If you were born on July 1, 1949, or later, your first RMD is due by April 1 of the year after which you turn 72. Your second would be due by Dec. 31 of that same year, and then by Dec. 31 of each year thereafter.
Advertisement
Advertisement - Article continues below
Advertisement

Most Popular

HSAs Get Even Better
Financial Planning

HSAs Get Even Better

Workers have more options with flexible spending accounts, too.
July 2, 2020
2020 Stock Market Holidays and Bond Market Holidays
Markets

2020 Stock Market Holidays and Bond Market Holidays

Is the market open today? Take a look at which holidays the stock markets and bond markets take off in 2020.
July 1, 2020
Find a Great Place to Retire
happy retirement

Find a Great Place to Retire

Our cities provide plenty of space to spread out without skimping on health care or other amenities.
July 2, 2020

Recommended

Stay on Top of RMD Rule Changes for 2020
required minimum distributions (RMDs)

Stay on Top of RMD Rule Changes for 2020

Between the SECURE Act and the CARES Act, the landscape has changed for RMDs this year. You don’t need to take one, for instance. And if you already h…
June 29, 2020
Retirees Get Another Break with Expansion of RMD Waiver
required minimum distributions (RMDs)

Retirees Get Another Break with Expansion of RMD Waiver

The CARES Act cancelled "required minimum distributions" for 2020...and the IRS just expanded that relief to help more seniors and give more time to u…
June 24, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020
12 Ways to Get Your Retirement Plan Back on Track
retirement planning

12 Ways to Get Your Retirement Plan Back on Track

If your financial situation hits a rough spot, there are a number of things you can do to get your retirement plan moving in the right direction again…
June 19, 2020