What Clients Need to Know About RMDs in 2021, Mar. 23, 2021

RMDs might have been the last thing on clients' minds during 2020. However, clients should be reminded that RMDs are back on the table in 2021—the RMD waiver was not extended beyond 2020. Clients should also know that the RMD rules were changed immediately prior to the 2020 suspension by the 2019 SECURE Act, so that certain clients might not need to take an RMD in 2021 even if they've turned 70½. There is some confusion with respect to clients who turned 72 in 2020—and were permitted to skip their first RMD, which would have been due April 1, 2021. For these clients, the 2021 RMD is their second RMD (their first RMD having been waived). Therefore, that RMD would be due December 31, 2021. For more information on the RMD rules, see Q 3686.