Mandatory Required Distributions · Retirement CASH FLOW

Mandatory Required Distributions

How many of you have thought about the IRS rules regarding your retirement plans and that once you turn 73 (until 2033 when it will be 75).

Did you know that if you had a ROTH IRA that there are NO mandatory withdrawal requirements? I didn't either until I looked up the rules the other day because I am getting close to that number. But, the good thing for me is that I converted my Traditional IRA to a Roth over 15 years ago when the value was still LOW. I paid the tax in 1 shot, because I didn't know you could spread it out over several years.

Who Must Take RMDs?

Owners of Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and 457(b) plans.
Beneficiaries who inherit retirement accounts (except Roth IRAs, where the original owner is exempt).

When Do You Start?

Age 73: For those turning 72 in 2023 or later, the first RMD is due by April 1st of the year after you turn 73.
Age 75: Starting in 2033, the age will increase to 75 for those born in 1960 or later.
Workplace Plans: You can often delay RMDs from employer plans until you retire, unless you own 5% or more of the business.

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