Baltimore, MD - Mar. 14, 2017 - If you own a retirement account (except for a Roth IRA), the answer to this question is a resounding “YES”! In the year that you turned 70 and ½, you are required to start the distribution (and taxation) of your tax deferred retirement account based on your account balances and actuarial life expectancy. You are required to take the distribution annually. If you do not take the Required Minimum Distribution (RMD), you will be taxed and penalized.

When passing the RMD requirement, Congress allowed for a first year deferral. That means, if you were required to start your RMD in 2016, you could have delayed the first RMD until April 18th 2017. The 2017 RMD is still required by December 31st 2017.

While for most people who were required to start the RMDs this fact is water under the bridge, if you forgot about taking the RMD before the end of 2016, taking it now (before April 18th) as a 2016 RMD is still an option. And, for all readers who were born between July 1st 1946 and June 30th 1947, the extended RMD deadline is certainly something to consider for the current tax year.

If you have any questions, please speak to a qualified tax or retirement advisor.