TAX RESOURCE CENTER
With your retirement accounts, you’ll want to make sure you know how much is enough to withdraw from your account as well as the date your withdrawal must be made by every year in order to avoid a significant penalty of 50% from the IRS. In the year your first Required Minimum Distribution (RMD) is required (generally, the year you turn 72), you have until April 1 of the following year to take it. After the first year you reach age 72, and for every year thereafter, you’ll be required to take your RMDs by December 31. However, if you turned 70½ in 2019 or prior, you must continue to take your RMDs as scheduled.
The IRS has online resources that can help. IRS Publication 590-B covers IRA distributions including the RMD. Visit IRS.gov.
When you inherit a retirement account, you'll need to calculate the required minimum distribution for the account you've inherited. The options vary based on if you are the sole beneficiary of your spouse's account or someone else. In addition to the options below, an owner's surviving spouse and sole beneficiary has the option to transfer an IRA to the spouse's own IRA and treat it as his/her own. Options for taking required minimum distributions include:
If original owner dies before required beginning date
If original owner dies after required beginning date
Spouse: Begin taking RMDs by no later than December 31 of the year in which the owner would have turned 72, or the year following the owner's death based on your single life expectancy. Use the Single Life Expectancy Table to determine the factor to use based on your age.
Non-spouse: A full distribution of the account must be made by December 31 of the tenth year following the year of the owner’s death.
Calculating Required Minimum Distributions can be tricky. At Thrivent Mutual Funds, we recommend you consult your tax advisor. Thrivent Mutual Funds and their representatives cannot provide legal or tax advice.
1 5%+ owners of business sponsoring retirement plan must start RMDs by April 1 following the calendar year in which they reach age 72 regardless if there is a delayed retirement provision. However, if you turned 70½ in 2019 or prior you must continue to take your RMDs as scheduled.