Required Minimum Distributions for Account Owners
|
| IRAs including SEP, SIMPLE
and SARSEP IRAs
| Defined Contribution Plans
|
When do I take my first RMD (the required
beginning date)?
| You must take your first RMD by April 1 of
the year following the year in which you turn 70½, regardless of whether you
are still employed.
| April 1 of the year following the later of
the year you turn 70 ½ or the year you retire (if allowed by your plan). If
you are a 5% owner, you must start RMDs by April 1 of the year following the
year you turn 70½.
|
When do I reach age 70½?
| You reach age 70½ on the date that is 6
calendar months after the date of your 70th birthday.
Example: Your
70th birthday was June 30, 2010. You reached age 70½ on December 30, 2010.
You must take your first RMD (for 2010) by April 1, 2011.
Example: Your 70th birthday
was July 1, 2010. You reached age 70½ on January 1, 2011. You do not have an
RMD for 2010. You must take your first RMD (for 2011) by April 1, 2012.
| Same as IRA rule
|
What is the deadline for taking subsequent
RMDs after the first RMD?
| After the first RMD, you must take
subsequent RMDs by December 31 of each year beginning with the calendar year
containing your required beginning date.
Example: You turn 70½ on
July 15, 2010. You must take your first RMD, for 2010, by April 1, 2011. You
must take your second RMD, for 2011, by December 31, 2011, and your third
RMD, for 2012, by December 31, 2012.
| Same as IRA rule
|
How do I calculate my RMD?
| Your RMD is generally determined by dividing
the adjusted market value of your IRAs as of December 31 of the preceding
year by the distribution period that corresponds with your age in the Uniform
Lifetime Table (Table III in IRS Publication 590, Individual Retirement Arrangements (IRAs)).
If your spouse is your sole beneficiary and
is more than 10 years younger than you, you will use the Joint Life and
Last Survivor Expectancy Table (Table II in IRS Publication 590).
Required Minimum Distribution Worksheets
| Same as IRA rule
Your
plan sponsor/administrator should calculate the RMD for you.
|
How should I take my RMDs if I have multiple
accounts?
| If you have more than one IRA, you must
calculate the RMD for each IRA separately each year. However, you may
aggregate your RMD amounts for all of your IRAs and withdraw the total from
one IRA or a portion from each of your IRAs. You do not have to take a
separate RMD from each IRA.
| If you have more than one defined
contribution plan, you must calculate and satisfy your RMDs separately for
each plan and withdraw that amount from that plan.
Exception: If you have more than one 403(b)
tax-sheltered annuity account, you can total the RMDs and then take them from
any one (or more) of the tax-sheltered annuities.
|
May I withdraw more than the RMD?
| Yes, an IRA owner can always withdraw more
than the RMD. You cannot apply excess withdrawals toward future years’ RMDs.
| Same as IRA rule
|
May I take more than one withdrawal in a
year to meet my RMD?
| You may withdraw your annual RMD in any
number of distributions throughout the year, as long as you
withdraw the total annual minimum amount by December 31 (or April 1 if it is
for your first RMD).
| Same as IRA rule
|
What happens if I do not take the RMD?
| If the distributions to you in any year are
less than the RMD for that year, you are subject to an additional tax equal
to 50% of the undistributed RMD.
| Same as IRA rule
|