IRS Issues Year-End Reminder on IRA Distributions

By ASPPA Net Staff • December 15, 2016 • 0 Comments
Taxpayers older than age 70½ generally are required to receive payments from their IRAs and workplace retirement plans by New Year’s Eve, the IRS reminds. The IRS issued the reminder on Dec. 14 in IR-2016-170.

The IRS notes that for 2016, the limit for a 401(k) is $18,000 and that for those age 50 or older, for traditional and Roth IRAs the limit is $6,500 and up to $15,500 for a Simple IRA.

The IRS also notes, however, that those who reached age 70½ in 2016 have until April 1, 2017 to receive payments from their IRAs and workplace retirement plans. It also reminds that while most workplace retirement account contributions should be made by the end of the year, taxpayers still can make 2016 IRA contributions through April 18, 2017.