The RMD Deadline is Fast Approaching for 2023

The December 31 deadline to take required minimum distributions is just a few short weeks away. Clients who are at least 73 years old in 2023 must take a distribution (note that if the client turns 73 in 2023, the actual deadline is April 1, 2024) from traditional retirement accounts and Roth 401(k)s by year-end. Roth IRA owners are not subject to the lifetime minimum distribution rules. Beneficiaries of traditional inherited IRAs may also need to take a distribution by December 31 if the original account owner was taking RMDs prior to death. The IRS extended penalty relief to 2023 because of confusion created by the new rules, but not all inherited beneficiaries are covered. For example, RMDs are still required for beneficiaries who inherited accounts before 2020. Clients should be advised to check with their IRA custodians to determine whether the custodian has imposed an earlier RMD deadline. For more information on the RMD rules, visit Tax Facts Online. : Q 3892.