Retirement Plan Required Minimum Distributions

Course: Retirement Planning
Lesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners

Student Question:


I’m trying to distinguish when the required minimum distribution amounts are at 72 years old versus when they are 70½.  IRAs are now 72, correct?  Is a 401k Plan and a 403b Plan at 70½?


Instructor Response:

Hi Tiffany,
Great question. 

A client’s required beginning date depends upon her age, not the type of retirement plan.

For example, all qualified plans (such as 401(k) Plans), 403(b) Plans, 457(b) Plans, Traditional IRAs, SEP IRAs, SARSEP IRAs and SIMPLE IRAs have required minimum distributions and a required beginning date.   Roth IRAs do not have a required beginning as long as the original account owner is alive. 

However, a client’s required beginning date (RBD) varies depending upon when the client reaches age 70½.  A client’s RBD is generally April 1 following the year she reaches:

  1. Age 72 if she reached age 70½ in or after 2020
  2. Age 70½ if she reached age 70½ before 2020

Let me know how fully this addresses your question Tiffany.

Onward and Upward,