RMDs in light of SECURE Act, COVID, etc.
Suppose an individual turned 70 1/2 in 2019 and did not take the RMD in 2020 due to COVID. They are now 72 in 2021–do they need to take the RMD in the calendar year 2021? Or do they now fall into the SECURE Act age bracket of age 72 RBD? If that’s the case then they technically have until the tax filing deadline in April 2022 to to the RMD for 2021, is that correct?
Permalink Submitted by Alan - IRA critic on Fri, 2021-11-05 16:08
No, it does not work that way. The CARES Act did allow the 2019 RMD due on 4/1/2020 to be waived along with the 2020 RMD, therefore 2 years of RMDs were waived if client did not distribute the 2019 RMD in 2019. But this did not extend the age based RBD as well. The 2021 RMD based on the 12/31/2020 balance is due by 12/31/2021.