First Year Required Minimum Distribution - RMD

Congratulations! You are RMD Age.

This is the first year you are required to take a distribution from your IRAs.

What are my options?

You have a few options available to you regarding the method in which you can take it:

• We can process it for you as a lump sum

• You can take it monthly or quarterly

• We can transfer into your taxable account or open a taxable account and have the funds reinvested

• You can take it as needed as long as you cover the full amount by year end.

Technically, you are able to delay your first year RMD to April 1st of the following year. This means you would take the first year RMD plus the second year RMD in the same tax year. This is a good strategy if you believe your income will be lower in the second year. More often it makes sense to take your first year RMD in the year that you reach RMD age to smooth out your taxable income.

For clients that do not have a preference, we process RMDs for all of our clients in mid-October.

If you would like more information about RMDs, check out our articles on required minimum distributions (RMD) and qualified charitable distributions (QCD). Please contact us with any questions.