There is less than a month to make required minimum distributions (RMDs) from traditional IRAs and employer-provided retirement plans to taxpayers who reached age 70½ in 2018. The IRS on March 5 in IR-2019-29 issued a reminder that the deadline is April 1.
The April 1 deadline applies to owners of traditional IRAs, SEPS and SIMPLE IRAs, but not Roth IRAs while the original owner is alive. It also applies to participants in some other retirement plans as well, including 401(k), 403(b) and 457 plans.
The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. This means that a taxpayer who turned 70½ in 2018 — born between July 1, 1947 and June 30, 1948 — must receive the first required payment on April 1, 2019 and must receive the second RMD by Dec. 31, 2019.
An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount on Form 5498 in Box 12b. For a 2018 RMD, this amount would have been shown on the 2017 Form 5498 normally issued to the owner during January 2018.
Some Can Delay RMDs
Though the April 1 deadline is mandatory for all owners of traditional IRAs and most participants in workplace retirement plans, some people with workplace plans can wait longer to receive their RMD. If their plan allows it, employees who are still working usually can wait until April 1 of the year after they retire to start receiving these distributions. However, the IRS cautions that employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.
- Log in to post comments