Reminder: April 1 RMD Deadline is Right Around the Corner

The IRS has recently issued a reminder to taxpayers who turned 72 during the 2022 tax year. While required minimum distributions from retirement accounts typically must be taken by December 31 of the relevant tax year, a special rule exists for first-time RMDs. For taxpayers who reached their required beginning date of 72 during 2022, the initial RMD is not due until April 1 of 2023. If the IRA owner waited until 2023 to take their initial RMD, that means the owner will also be required to take a second RMD before December 31 to cover their 2023 RMD obligations. This RMD rule applies to all traditional retirement accounts. However, an exception does exist for participants in employer-sponsored plans who continue to work past their required beginning date. This "still working" exception only applies to taxpayers who do not own 5% or more of the company that sponsors the retirement plan and it is similarly unavailable for sponsors of SEP and SIMPLE IRAs. For more information on the still working exception to the RMD rules, visit Tax Facts Online. : Q .