RMD’s

Submitted by Robert Roselli on Fri, 2020-11-20 14:10

I have a few questions:

1) Can you confirm that the IRS approved a new table to determine RMD’s that will go into effect in 2022?
2) Is there any ruling on whether RMD’s will be reinstated for 2021?
3) If someone turns 72 in March 2021, is that rule still in effect that for the first year only, they can delay taking the 1st distribution to the following year of April 1st?



Submitted by Alan - IRA critic on Fri, 2020-11-20 17:10

  1. Yes, that is correct. Originally expected to be effective in 2021, but is delayed until 2022.
  2. They do not have to be reinstated, since the waiver specifically applied to 2020 only. RMDs resume in 2021.
  3. A person reaching 72 in March, 2021 also reached 70.5 in 2019. Therefore, their first RMD distribution year was 2019, which could have been deferred to 4/1/2020. In this situation, the portion of the 2019 RMD deferred until 2020 was waived along with 2020 RMDs. SInce RMDs resume in 2021, they have until 12/31/2021 to complete their 2021 RMD.

Submitted by Robert Roselli on Fri, 2020-11-20 21:39

Once we get to 2022, and someone turns 72 during that year. Will they be able to defer their first payment to 4/1/2023? Similar to how individuals could defer the first payment now.

Submitted by Alan - IRA critic on Fri, 2020-11-20 22:48

  • Yes, if a person reaches 72 in 2022, then 2022 is their first RMD distribution year, with an option to defer thata 2022 RMD to 4/1/2023.
  • As indicated above, if the person reaches 72 in the first half of 2021 (eg March), then their first RMD distribution year was 2019 with an option to defer to 4/1/2020. But if the person reaches 72 in the second half of 2021, they did not reach 70.5 in 2019. These people use age 72 and their first RMD distribution year is 2021 with an option to defer their first RMD to 4/1/2022.
  • Due to the cut off dates for the age change from 70.5 to 72, NO ONE will have their first RMD year as 2020, even if 2020 RMDs had not been waived. Accordingly, no one will have 4/1/2021 as their RBD. 

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