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Required Minimum Distributions: Year-End Issues

The end of the year is the deadline for most individuals with qualified retirement plans and IRAs to take their required minimum distributions (RMDs) if they have attained age 70' or inherited their benefits (Code Sec. 408(a)(9)). RMDs for 2015 are based on the account's value at the end of 2014. The failure to take RMDs can result in a 50% penalty (Code Sec. 4974). As part of its Tax Preparedness Series, the IRS reminded affected individuals to remember to take their RMDs by Dec. 31 (IR-2015-122, Oct. 29, 2015). Here are some key issues that can impact RMDs.

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