How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 577
Experience:  10 years experience
16356563
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

I will be 74 years old in march of 2016, I want to retire in

Customer Question

I will be 74 years old in march of 2016, I want to retire in may of 2016, do I need to take my required minimum distribution for 2016 taxable year?
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70 1/2.

The required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.”

.

Beginning date for your first required minimum distribution for 401(k), profit-sharing, 403(b), or other defined contribution plan - generally, April 1 following the later of the calendar year in which you:

--reach age 70 1/2, or

--retire.

If you own 5% or more of the business sponsoring the plan, then you must begin receiving distributions by April 1 of the year after the calendar year in which you reach age 70 1/2.

.

So - if you retire in March 2016 - you do need to take RMD for 2016 - and that distribution must be taken before Apr 1, 2016.

Questions?

Related Tax Questions