Don't Panic If You're Turning 70½ This Year and Get an RMD Statement in the Mail
Thanks to the SECURE Act, RMDs aren't required until you turn age 72.
Seniors who turn 70½ in 2020 could get a statement in the mail this month saying they have to take a required minimum distribution (RMD) from their IRA in 2020. If you're in that age group and get one of these statements, don't worry—it's a mistake. (You could also get a Form 5498 saying the same thing, but they aren't due until June 1.)
If an RMD is due for 2020, the financial institution that maintains your IRA must send you an RMD statement by January 31, 2020. The statement will tell you the due date for the RMD, and either provide the amount of the RMD or offer to calculate the amount upon your request.
For years, the RMD requirement kicked in when you turned age 70½. However, thanks to the SECURE Act, which was enacted on December 20, 2019, RMDs are now delayed until you turn 72. As a result, RMD statements should not be sent to IRA owners who will turn 70½ in 2020.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Nevertheless, some people who turn 70½ this year will still receive an RMD statement in the mail this month. Since the SECURE Act became law so late last year, some financial institutions just didn't have enough time to adjust their systems that generate RMD statements. The IRS won't penalize financial institutions that send incorrect statements if the IRA owner is notified by April 15, 2020, that no RMD is actually required for 2020.
Note, however, that the SECURE Act did not change the RMD start date for IRA owners who turned 70½ in 2019. So, if you turned 70½ last year, you're still required to take your first RMD by April 1, 2020.
-
Your Guide to Buying Art OnlineFrom virtual galleries to social media platforms, the internet offers plenty of places to shop for paintings, sculptures and other artwork without breaking the bank.
-
Samsung Galaxy S25 Ultra for $4.99 a Month: A Closer Look at Verizon’s DealVerizon’s aggressive pricing makes Samsung’s top-tier phone tempting, but the real cost depends on your plan and how long you stay.
-
I'm 59 with $1.7 million saved and lost my job. Should I retire?We asked professional wealth planners for advice.
-
Retirees in These 7 States Could Pay Less Property Taxes Next YearState Taxes Retirement property tax bills could be up to 65% cheaper for some older adults in 2026. Do you qualify?
-
Estate Tax Quiz: Can You Pass the Test on the 40% Federal Rate?Quiz How well do you know the new 2026 IRS rules for wealth transfer and the specific tax brackets that affect your heirs? Let's find out!
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Are You Middle-Class? Here's the Most Tax-Friendly State for Your FamilyTax Tips We found the state with no income tax, low property tax bills and exemptions on groceries and medicine.
-
Social Security Benefits Quiz : Do You Know the IRS Tax Rules?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
How Are I Bonds Taxed? 8 Common Situations to KnowBonds Series I U.S. savings bonds are a popular investment, but the federal income tax consequences are anything but straightforward.
-
Capital Gains Tax Quiz: How Well Do You Really Know IRS Investment Tax Rules?Quiz Take our capital gains tax quiz to test your investment taxes knowledge. Learn about loss rules, holding periods, and tax incentives that could impact your savings.
