The Internal Revenue Service (IRS) requires that most retirement plan account owners take required minimum distributions (RMDs) from their retirement accounts when they re๊ach a certain age: 72 or age 73 if they reach age 72 after Dec. 31, 2022.

Distributions must begin in the year you reach the applicable age but you can wait until April 1 of the following year to take your first RMD for the first year. You must take your first RMD by April 1, 2025 if you reach age 73 in 2024. You must then take your second RMD by Dec.31, 2025.

澳洲幸运5官方开奖结果体彩网:Calculating these distributions and the rules about the timing can be tricky so it's best to familiarize yourself with them to avoid IRS penalties if you're nearing retirement.

1. RMDs Aren't Rollover Eligible

Required minimum distributions from one IRA generally can't be rolled over to another 澳洲幸运5官方开奖结果体彩网:individual👍 retirement account (IRA) or other tax-deferred retirement plan.

You could contribute the 澳洲幸运5官方开奖结果体彩网:RMD to a Roth account, however, if you meet income requirements and you don't exceed the maximum total contribution thresholds. You'll have to deduct the taxes due before the contribution. Exceeding your contribution limits will be treated as excess contributions that must be removed from the account by a certain time to avoid taxes and penalties.

The limit on annual contributions to an IRA is $7,000 in 2024. A catch‑up contribution of an additional $1,000 for a total of $8,000 is allowed for individuals who are age 50 and over.

Any distribution taken from your IRA in a year when an RMD is due is considered part of your RMD for that period.

2. Combining RMDs Into One Account

Your RMD for each account must be determined separately if you participate in more than one 澳洲幸运5官方开奖结果体彩网:qualified plan, such as a 401(k) and a 457(b). Each appropriate amount must be distributed from the respective type of plan, then you can aggregate the RMD for all similar plans if you own multiple IRAs or multiple 403(b) accounts, traditional IRAs, or 403(b)s. Then take the amount from one account of each type of plan.

3. IRA Transfers in an RMD Year

You can transfer your entire IRA balance even if an RMD is due provided that you take the RMD from the receiving IRA by the applicable deadline. The custodian of your new IRA may not know that the RMD associated with the old IRA is due, however, so be sure that you remember that it is and take it by the deadline. You'll face a 50% penalty if you forget.

4. Death, Divorce, and the RMD

You're treated as married for the entire year for RMD calculation purposes if you were married as of Jan. 1 of the year when the calculation is done. This applies even if you divorce or your spouse dies later that year.

“Upon divorce, RMDs💙 and retirement assets, in general, can become very tricky and vary from state to state,” says Dan Stewart, CFA, president of in Dallas, Texas. “And community property states would have different rules than other states. So competent counsel is important, especially to avoid or minimize taxes.”

5. Family Attribution Rule

An individual who owns 5% or more of a business can't delay beginning the RMD for a non-IRA retirement plan beyond April 1 of the year following the year in which they reach the required age. This is the case even if they're still employed.

Your ownership may be attributed to your spouse or children If you own more than 5% of a business and they're employed by the same company. They might be considered owners and could be subject to the same deadline as you.

6. IRA Custodian Reporting

The custodians/trustees of your traditional IRA, SEP IRA, or 澳洲幸运5官方开奖结果体彩网:SIMPLE IRA must send you an RMD notification each year if they held that account on Dec. 31 of the preceding year. This notification must be sent to you by Jan. 31 of the year when the RMD applies. Some custodians will include a calculation of your RMD amount for the year but others will simply inform you that an RMD is due and that they'll compute the amount upon your request.

The Bottom Line

These rules serve as a general guide for retirees to help defuse the 澳洲幸运5官方开奖结果体彩网:impact of taxes on RMDs. Certain additional condit☂ions may apply, however, given your circumstances and situation. Consult with a tax professional if you have any questions about how to calculate your RMDs or when to take them.