RMD April 1 Deadline Looms
Time draws short for required minimum distributions (RMDs) from traditional IRAs and employer-provided retirement plans to taxpayers who reached age 70½ in 2014. The IRS on March 19 in IR-2015-55
issued a reminder that the deadline is April 1.
The April 1 deadline applies to owners of traditional IRAs but not Roth IRAs. Normally, it also applies to participants in some other retirement plans as well, including 401(k), 403(b) and 457 plans.
The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. This means that a taxpayer who turned 70½ in 2014 and receives the first required payment on April 1, 2015 must still receive the second RMD by Dec. 31, 2015.
Affected taxpayers who turned 70½ during 2014 must figure the RMD for the first year using the life expectancy as of their birthday in 2014 and their account balance on Dec. 31, 2013. The trustee reports the year-end account value to the IRA owner on Form 5498
in Box 5. Worksheets and life expectancy tables for making this computation can be found in the Appendices to Publication 590-B