Minimum Required Distributions

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IRA (Other Than a Roth IRA)

A taxpayer must start receiving distributions from your IRA by April 1 of the year following the year in which he/she reaches age 70½. At that time, the taxpayer can receive the entire interest in the IRA or begin receiving periodic distributions. If the taxpayer chooses to receive periodic distributions, a minimum required distribution must be received each year. The minimum required distribution can be figured by dividing the account balance of the taxpayer's IRAs (other than Roth IRAs) on December 31 of the year preceding the distribution by the applicable life expectancy. For applicable life expectancies, see IRS Publication 590.

If the trustee, custodian, or issuer of an IRA informs the taxpayer of the minimum required distribution, that amount can be used.

If the taxpayer has more than one IRA, the minimum required distribution can be taken from any one or more of the individual IRAs.

For more details on the minimum distribution rules (including examples), see Publication 590.

Roth IRA

There are no minimum required distributions during the lifetime of the owner of a Roth IRA. Following the death of the Roth IRA owner, required distribution rules apply to the beneficiary. See Publication 590 for details.

Qualified Retirement Plans (other than IRAs) and Eligible Section 457 Deferred Compensation Plans

In general, a taxpayer must begin receiving distributions from a plan no later than April 1 following the later of (a) the year in which the taxpayer reaches age 70½ or (b) the year in which the taxpayer retires.

Exception. If the taxpayer owned more than 5% of the employer maintaining the plan, he/she must begin receiving distributions no later than April 1 of the year following the year in which age 70½ is reached, regardless of when you retire.

The plan administrator should figure the amount that must be distributed each year.

Sources: Publication 590; Publication 571

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