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IRA Distribution FAQs

When do I need to take my first RMD?
You must take your first RMD by April 1 of the year following the year in which you turn 70½. This date also applies to owners of businesses who participate in an Individual 401(k) plan.
When do I reach age 70½?
You reach age 70 ½ on the year that contains the 6th calendar month after the date of your 70th birthday. Example: Your 70th birthday was June 30, 2018. You reached age 70 ½ on December 30, 2018. You must take your first RMD (for 2018) by April 1, 2019.
What is the deadline for taking subsequent RMDs after the first RMD?
After the first RMD, you must take subsequent RMDs by December 31 of each year beginning with the year containing your required beginning date. Example: You turn 70 ½ on July 15, 2018. You must take your first RMD, for 2018, by April 1, 2019. You must take your second RMD, for 2019, by December 31, 2019, and your third RMD, for 2020 by December 31, 2020.
How do I calculate my RMD?
Your RMD is generally determined by dividing the adjusted market value of your IRAs as of December 31 of the preceding year by a life expectancy number that corresponds with your age under the Uniform Lifetime Table [Table III in IRS Publication 590, Individual Retirement Arrangements (IRAs)]. The age used on the table is the age you would attain as of your birthday during the year. If your spouse is your sole beneficiary, and is more than 10 years younger than you, you have the option to use the Joint Life and Last Survivor Expectancy Table (Table II in IRS Publication 590) which will reduce the amount required. For Individual 401(k) plans, the Employer/Plan Sponsor is responsible for calculating and distributing the RMD from the plan. Failure to distribute the RMD for plan participants will jeopardize the plan’s qualified status which has tax consequences including plan disqualification.
How should I take my RMD if I have multiple accounts?
If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you may combine your RMD amounts for all of your IRAs and withdraw the total from one IRA or a portion from each of your IRAs. You do not have to take a separate RMD from each IRA. Although, if you have more than one defined contribution plan (e.g. 401(k)), you must calculate and satisfy your RMDs separately for each plan and withdraw that amount from each plan accordingly.
May I withdraw more than the RMD?
Yes, an IRA owner can always withdraw more than the RMD. However, you cannot apply excess withdrawals toward future years’ RMDs.
May I take more than one withdrawal in a year to meet my RMD?
You may withdraw your annual RMD in any number of distributions throughout the year, as long as you withdraw the total annual minimum amount by December 31 (or April 1 if it is for your first RMD).
What happens if I do not take an RMD?
If the distributions to you in any year are less than the RMD for that year, you are subject to an additional tax equal to 50% of the undistributed RMD. For Individual 401(k) plans, not only will the employer be subject to the 50% penalty, it could also be a disqualification issue for the plan. It is recommended for the employer to go through the IRS and or the Department of Labor’s correction programs if an RMD is failed to be distributed. Check with a tax or legal advisor for assistance with the programs.
Can taking a distribution affect my Social Security payments?

Social Security income is typically not taxed as long as the combined taxable income of an individual or a married couple is below a certain level. IRS publication 915 provides more information on how your social security benefit is taxed. You may benefit from seeking the guidance of a tax advisor if you have further questions.

If I withdraw money from my IRA before I am age 59½, which forms do I need to fill out?
Regardless of your age, you will need to declare the distribution on the IRS Form 1040 which is your personal tax return. Show the amount of the IRA withdrawal on the line that state IRA distributions. Since you took the withdrawal before you reached age 59½, unless you met one of the exceptions listed in Publication 590-B, you will need to pay an additional 10% tax on early distributions and report it on Form 1040 as an additional tax. You will need to complete and attach a Form 5329 to report any amount subject to the early distribution penalty or to state an exception to a penalty. Certain distributions from Roth IRAs are not taxable.
What is a qualified charitable distribution?
A qualified charitable distribution is a taxable distribution from an IRA owned by an individual who is age 70½ or over. Up to $100,000 of taxable distributions per tax payer are exempt from taxation if paid directly from the IRA to a qualified charity See Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs) for additional information.
Can a qualified charitable distribution satisfy my required minimum distribution from an IRA?
Yes, your qualified charitable distribution can satisfy all or part the amount of your required minimum distribution from your IRA. For example, if your 2018 required minimum distribution was $10,000, and you made a $5,000 qualified charitable distribution for 2018, you would have had to withdraw another $5,000 to satisfy your 2018 required minimum distribution.
How do I report a qualified charitable distribution on my income tax return?
To report a qualified charitable distribution on your Form 1040 tax return, you generally report the full amount of the charitable distribution on the line for IRA distributions. On the line for the taxable amount, enter zero if the full amount was a qualified charitable distribution. You will need to put the acronym QCD which represents Qualified Charitable Distribution.