Unpacking the complexity of RMD start dates If you delayed your first RMD until April 1, 2020, you avoided both the 2019 and 2020 RMD. However, in 2021 you will have to take your first RMD. This RMD is due by the end of 2021, not April 1, 2022.

Do I have to make RMD this year?

RMDs are required minimum distributions investors must take every year from their retirement savings accounts, including traditional IRAs, and employer-sponsored plans such as 401(k)s, and Roth 401(k)s, starting at age 72. If you’re turning 72 this year and taking your first RMD, you have until April 1, 2022, to do so.

What happens if you miss the RMD deadline?

For every dollar you didn’t take out when you were supposed to, the IRS will charge you a 50% penalty tax. This can add up significantly over time. The IRS determines the amount of your RMD by dividing the total balance of all of your IRA accounts by your life expectancy. At age 70, the IRS pegs your life expectancy at 27.40 more years.

How can I find out if my RMD is correct?

Double check your RMD calculation to be sure it’s accurate. The RMD is based on the total balance of all your IRAs as of December 31 of the previous year. If you missed your 2014 IRA RMD, the calculation is based on your 2013 year-end balance.

When do you have to take a RMD from your IRA?

If you are over age 70 and a half, the IRS requires you to take a required minimum distribution known as an RMD from your IRA each year. This post was published on the now-closed HuffPost Contributor platform.

How can I get the IRS to waive my RMD?

The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.