Required Minimum Distributions


Required Minimum Distributions (RMDs) are minimum amounts that a retirement plan account holder must withdraw annually.  The first RMD payment, however, can be delayed until April 1st of the year following the year in which the first RMD is required.  For all subsequent years, the account owner must take the RMD by December 31st.  If the accountholder chooses to delay the first RMD, he/she will be required to distribute the 2nd RMD payment by December 31 of that same year. All account holders are required to withdraw either funds or assets from their IRA annually.  The amount is based on your age and account balance and changes each year. The RMD amount must be calculated separately for each IRA the account holder owns, but the total annual RMD amount can be withdrawn from one or a combination of their IRAs.
In December 2019, Congress passed new RMD rules that raise the RMD required beginning date to 72 years of age.  The change, however, does not apply to those who turned 70 ½ prior to January 1, 2020.  Therefore, IRA accountholders born before 7/1/1949 are subject to the 70 ½ start date while IRA accountholders born on or after 7/1/1949 are subject to the age 72 start date.