Required minimum distribution (RMD) is the minimum amount you must withdraw from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account(s) each year. You generally must start taking withdrawals when you reach age 70½. The deadline for taking your RMD is December 31 of each year.
Don't wait until the last few weeks of the year to request this withdrawal because the check must be dated by December 31, 2019 in order to qualify for a 2019 distribution. If you don't take the required minimum distributions by the end of the year, you may have to pay a 50% excise tax on the amount not distributed as required. You can either step-up withholdings on the distributions or make estimated tax payments to cover the tax. If you need help calculating the amount of tax to pay, please give us a call.
Visit the IRS website for RMD Frequently Asked Questions.