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March 26, 2017

Required Minimum Distribution (RMD) : April 1 Deadline for some

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Generally, you are required to take a required minimum distribution (RMD) from your traditional IRAs, SEP IRAs and SIMPLE IRAs for the year in which you reach age 70 ½ and every year after.

While RMDs are generally required to be taken by 12/31 of the year for which they are due, the RMD for your 70 ½ (the year in which you reach age 70 ½) year can be taken as late as April 1 of the following year.

This means that if you reached age 70 ½ at any time during last year, your RMD for last year must be taken by April 1 of this year.

If you fail to take your RMD by the deadline, you will owe the IRS an excess accumulation penalty of 50% of the RMD shortfall.

Be sure to contact your IRA custodian to have your RMD distributed by the deadline.

 If you miss your RMD deadline, see the article What to Do If You Missed Your RMD Deadline

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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