Required Minimum Distributions (RMDs)

January 3, 2020

You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70½. Roth IRAs do not require withdrawals until after the death of the owner.

Your required minimum distribution is the minimum amount you must withdraw from your account each year.

• You can withdraw more than the minimum required amount.
• Your withdrawals will be included in your taxable income except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts).

Required Minimum Distributions
You may need to take a required minimum distribution from your IRA or retirement plan account by the end of the year:

• If you’re at least age 70½ this year, or
• If you’ve inherited an IRA or retirement account.

Recent legislation, known as the Secure Act, does not affect required minimum distributions for the 2019 tax year.

The Secure Act
Recent legislation, commonly known as the Secure Act, raises the age for required minimum distributions to 72 beginning in 2020. It also removes the age limit for contributions to traditional IRAs beginning in 2020.

This legislation does not affect the rules for 2019. If you’re at least 70½ in 2019, you must take a required minimum distribution. And you’re not allowed to make contributions to your traditional IRA for 2019 after age 70½.

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