RMD Essentials

• If you were born after June 30, 1949, the starting age for your RMD (required minimum distribution) is 72. • The deadline to take your RMD is December 31st unless you turned 72 this year. As the account holder, you can elect to receive your first RMD distribution as late as April 1 of the following year you reach age 72. • If you do not own 5% or more of the company you work for and you are still working, you may be able to delay the start of your distributions in a non-IRA retirement plan. • Roth IRAs do not require an RMD. They are required, however, from Roth 401(k), Roth 403(b), and Roth 457(b) accounts. It may be wise to transfer the savings in those accounts to a Roth IRA at some point to avoid RMDs.

Note: There are tax consequences associated with such a transfer. • You can avoid paying tax on your RMD by making a qualified charitable distribution (QCD). In general, you can distribute up to $100,000 per year tax free from your IRA directly to qualified charities. This action can count toward your RMD for the year. Note: QCDs can be made at age 70 1/2 or later; you don’t need to wait until age 72.