Required minimum distribution deadline for seniors
The Internal Revenue Service is reminding taxpayers who turned 70-1/2 during 2014 that they most likely need to start taking required minimum distributions from their IRAs and other retirement plans by April 1.
The April 1 deadline applies to owners of traditional IRAs, and participants in 401(k), 403(b), 457 and most other workplace retirement plans, but not to Roth IRAs.
The deadline applies to required distributions for the first year; in subsequent years, RMDs must be made by December 31, so that a taxpayer who takes their first RMD on April 1, 2015, will need to take their second nine months later on Dec. 31, 2015.
Affected taxpayers must figure the RMD for the first year using the life expectancy as of their birthday in 2014 and their account balance on Dec. 31, 2013. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5.
If you have questions about taking your RMD, contact a ShindelRock tax professional.
Source: Accounting Today