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 1. Home
 2. Retirement
 3. Retirement Plans
 4. Required Minimum Distributions (RMDs)


WHEN IS YOUR FIRST RMD DUE?

If you turn 72 in 2022, you still have plenty of time to take your first RMD.
But you might be better off taking it now.

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(Image credit: Getty Images)

By Rocky Mengle
last updated September 13, 2022

If there's one thing my father complains about every year, it's having to take
required minimum distributions (RMDs) from his IRAs and 401(k) plan. He did a
good job saving money for retirement when he was younger, so he doesn't really
need to withdraw much from his retirement accounts each year. He has reluctantly
been taking RMDs for several years now, but if you turned 72 in 2022 (or are
about to turn 72 this year), you're just getting started. But there's good news
if your 72nd birthday is this year – you have until April 3, 2023, to take the
required withdrawals from your retirement accounts for 2022. So, while you don't
want to forget about it, you still have plenty of time to take your first RMD.



The Basics of Required Minimum Distributions: 12 Things You Must Know About RMDs

And please take the deadline seriously. If you don't withdraw your first RMD by
the April 3 due date, or if your distribution isn't large enough, you could be
hit with a big IRS penalty. That's something you really want to avoid.



[NOTE: The due date is usually on April 1. However, since April 1 falls on a
Saturday in 2023, it's move to the next business day – which is April 3.]


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DUE DATES FOR REQUIRED MINIMUM DISTRIBUTIONS

As the IRS tells us, "you cannot keep retirement funds in your account
indefinitely." That's why you're generally required to start taking money out of
your retirement accounts each year (except Roth IRAs) once you reach 72 years of
age. (Distributions from a Roth IRA are not required until after the owner's
death.)

RECOMMENDED VIDEOS FOR YOU...kiplinger



RMDs: An IRS Change is Making Them Smaller in 2022

Normally, you must take your annual RMD by December 31. However, you can delay
your first RMD until April 1 of the year following the year in which you reach
age 72 (or the next business day if April 1 falls on a weekend or holiday – like
it does in 2023). You don't have to delay the RMD, but it's an option.



If you're still working and don't own at least 5% of the company, you can also
delay taking RMDs from your current employer's 401(k) plan until April 1 of the
year after the year you retire. Again, it's your choice.

Delaying your first RMD can work for you or against you. If you delay your first
RMD to the following year, you'll have to take two RMDs in that year: One for
the year you delayed the RMD (i.e., for the year you turned 72), plus the one
you'd normally have to take by December 31 for the year. This could trigger
unintended consequences that increase your tax bill. For example, two RMDs in
one year might kick you into a higher tax bracket or affect the amount of Social
Security benefits that are subject to tax. One the other hand, if you had a lot
of income in the year you turned 72 or retired, it might make sense to delay
your first RMD to avoid similar problems that year. It all depends on your
circumstances.


CALCULATING YOUR RMD

Generally, the minimum amount you're required to withdraw each year is
calculated by dividing the account balance at the end of the previous year by a
life expectancy factor that the IRS publishes in Publication 590-B (opens in new
tab) for the previous tax year. (Note: For first-time RMDs that are due April 3,
2023, for people who turned 72 in 2022, use Publication 590-B for the 2021 tax
year.) To help with the computation of RMDs from IRAs for 2022, we've created an
easy-to-use tool that calculates RMDs for you.

Taxes in Retirement: How All 50 States Tax Retirees

If you have more than one traditional IRA, you need to determine a separate RMD
for each IRA, but you can add up the RMD amounts and take the total from any one
or more of your IRAs. However, if you have multiple 401(k) accounts, you have to
calculate and take the RMD from each plan separately. (Your 401(k) plan sponsor
or administrator should calculate the RMD for you.)


PENALTY FOR FAILING TO TAKE RMD

There's a stiff penalty for failing to follow the RMD rules. If your retirement
plan distributions are less than the RMD for the year, you may have to pay an
excise tax equal to 50% of the RMD amount that was not distributed.

You may, however, be able to get out of paying the penalty tax. You can request
a waiver if your failure to take the RMD is due to a reasonable error and take
whatever steps are necessary to increase your distribution to the required
level. To request a waiver, submit Form 5329 (opens in new tab) with a statement
explaining the error and the steps you're taking make things right.


RMD CHANGES AHEAD?

Will changes be made to the RMD rules this year? Two big retirement bills are in
Congress that would do just that – the SECURE Act 2.0 and the EARN Act. (The
SECURE Act 2.0 has already been passed by the House of Representatives.) It's
too early to tell if any of the RMD changes in the two bills will eventually be
enacted into law, but many experts believe that a bipartisan retirement bill has
a good chance of getting to President Biden's desk this year.

RMD revisions included in the bill would:

 * Raise the age for taking your first RMD to 75;
 * Reducing RMD penalties;
 * Exempt Roth 401(k) accounts from the RMD rules;
 * Easy the RMD rules with respect to annuities in retirement plans;
 * Push back the RMD start date for certain surviving spouses; and
 * Expand the scope of qualified charitable distributions, which count towards
   RMDs.

For more information on these proposals, see 6 RMD Changes We Could See This
Year.

12 States That Tax Social Security Benefits


Explore More
Tax Tips
Rocky Mengle

Senior Tax Editor, Kiplinger.com

Rocky is a Senior Tax Editor for Kiplinger with more than 20 years of experience
covering federal and state tax developments. Before coming to Kiplinger, he
worked for Wolters Kluwer Tax & Accounting and Kleinrock Publishing, where he
provided breaking news and guidance for CPAs, tax attorneys, and other tax
professionals. He has also been quoted as an expert by USA Today, Forbes, U.S.
News & World Report, Reuters, Accounting Today, and other media outlets. Rocky
has a law degree from the University of Connecticut and a B.A. in History from
Salisbury University.


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