RMDs are Required for 2021 Again
By Diane Giordano, Partner, Tax & Business Services
An RMD is a required minimum distribution investors must make each year from retirement savings plans such as IRAs and 401Ks, starting at age 70 ½ or age 72, depending on your birthdate. (Roth IRAs aren’t subject to RMDs.)
During tax year 2020, the Coronavirus Aid, Relief & Economic Security (CARES) Act provided for a temporary waiver of RMDs. This meant that individuals were not required to withdraw from their retirement accounts during 2020.
There is no longer an RMD waiver in 2021. Therefore, those eligible must take their RMDs by year-end 2021 to avoid a potential 50% penalty―unless it is an initial RMD, in which case the investor has until April 1, 2022.
Should you have any questions about this distribution requirement, contact your Marcum tax advisor.