Federal Tax Day - Current,I.1,Retirees May Face April 1, 2015 Deadline for RMDs (IR-2015-55),(Mar. 20, 2015)
The IRS has reminded retirees who turned 70 ½ during 2014 that they may need to begin receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement accounts by Wednesday, April 1, 2015. The April 1 deadline only applies to the first year; the RMD for subsequent years must be made by December 31. A taxpayer who turned 70 ½ in 2014 would receive the first required payment on April 1, 2015, and the second one by December 31, 2015. Worksheets and life expectancy tables for making the computation can be found in IRS Publication 590-B. Affected taxpayers who turned 70 ½ during 2014 must figure the RMD for the first year using their life expectancy as of their birthday in 2014 and their account balance on December 31, 2013.
Some owners of workplace plans can wait longer to receive RMD. Employees who are still working can wait, if their plans allow, until April 1 of the year after they retire to begin receiving distributions. Employees of public schools and certain tax-exempt organizations with Code Sec. 403(b) plan accruals prior to 1987, should check with their employers, plan administrators or providers with respect to treatment of the accruals. Taxpayers are encourages to begin planning for distributions that may be required in 2015.