The waiver of required minimum distributions for 2020 is coming to a close; if you are of RMD age you must resume RMDs for 2021 and beyond. RMDs for beneficiary IRAs will need to resume in 2021 as well.
Reminder: RMDs do not apply to Roth IRA owners.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in late 2019, increased the RMD beginning age for IRA owners from age 70½ to age 72. As a result of this change, any IRA owner who reached age 70½ by December 31, 2019—those born June 30, 1949 or earlier—must begin taking RMDs for the year they reach age 70½and continue for every year thereafter (except for 2020, when RMDs are waived). IRA owners who reach age 70½ after December 31, 2019 must only begin RMDs for the year they reach age 72.
For 2021, IRA owners must take an RMD from a non-beneficiary IRA if they were born at any time in 1949 or earlier, as this means that the IRA holder would be at least age 72 on December 31, 2021.
If the IRA holder was born in 1950 and after, no RMD would be due for 2021 because they would not have reached age 70½ by December 31, 2019 and would be under age 72 as of December 31, 2021.
For beneficiary IRAs, whether the IRA holder must take an RMD for 2021 depends on several factors. Call me if you have questions about your beneficiary IRA.
If you have an employer-sponsored plan—such as 401(k) and 403(b) plans—you might need to take RMDs from accounts under those plans. Contact your plan administrators or HR department to determine whether they will automatically distribute RMDs or if you are required to submit RMD instructions.
If you were receiving a regular RMD last year and chose to waive it, let us know how you would like it restarted.
