Don't forget to take your RMD
Did you celebrate your
70½th birthday in 2014? Do you have a traditional or rollover IRA? If both
answers are yes, the deadline for taking the initial required minimum
distribution from your retirement account is April 1, 2015.
Required minimum
distributions are the smallest amount you can withdraw from your account to
avoid penalties, and your 70½th birthday is the triggering start date. That's
defined as six months after your 70th birthday.
As an example, if your
actual birthday was in July 2014, you'll turn 70½ in January 2015. That means
you don't have to take a minimum distribution for 2014. Instead, you're
required to take your first minimum distribution no later than April 1, 2016.
After the first distribution, you must complete each annual withdrawal by
December 31.
Note that you may want
to take your initial distribution by December 31 (instead of the following
April) to avoid two withdrawals in a single year.
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