Required minimum distributions, often referred to as RMDs, are amounts that the federal government requires you to withdraw annually from traditional IRAs and employer-sponsored retirement plans after you reach age 72 (or, in some cases, after you retire). The SECURE Act, passed in late 2019, raised the RMD age from 70 ½ to 72, effective January 1, 2020.
The CARES Act, passed in March of 2020, waived RMDs for 2020, but for 2021, you are required to take RMDs if you reached age 72 on or after January 1, 2020 or age 70 ½ prior to 2020.
You can always withdraw more than the RMD from your IRA or retirement plan in any year, but if you withdraw less than that amount, you will be subject to a federal penalty.
For more information, please contact us at 401-831-0200.