The return of RMDs – COVID-19-related suspension of RMDs is a thing of the past

Description

Abstract: The temporary reprieve is over. Due to the COVID-19 pandemic, Congress suspended the rules for required minimum distributions (RMDs) in 2020, including inherited accounts. But the rules have been restored for the 2021 tax year. Essentially, participants in qualified plans and IRAs who’ve reached their required beginning date must take distributions this year or potentially pay a hefty penalty. This article explains RMD rules and details what an individual must do before year end. A sidebar details the RMD options an individual has if he or has multiple accounts.