<figure>
 <img src="https://media.eaglewebservices.com/public/2020/9/1599869632873.png" alt="" />
 <figcaption></figcaption>
 </figure>IRSWASHINGTON — The Internal Revenue Service today reminded taxpayers about the rules for <a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds">required minimum distributions (RMDs)</a>&nbsp;from retirement accounts.A retirement plan account owner must normally begin taking an RMD 
annually starting the year he or she reaches 70 ½ or 72, depending on 
their birthdate and maybe the year they retire. Retirement plans 
requiring RMDs include traditional, Simplified Employee Pension Plan 
(SEP) and Savings Incentive Match Plan for Employees (SIMPLE) Individual
 Retirement Accounts; 401(k), 403(b), 457(b), profit sharing and other 
defined contribution plans.The Setting Every Community Up for Retirement Enhancement (SECURE) 
Act changed the age when individuals must begin taking withdrawals from 
their retirement accounts. Someone born on or before June 30, 1949, was 
required to start getting RMDs for the year they reached the age of 70½.
 However, under the SECURE Act, if a person's 70th birthday is July 1, 
2019, or later, they do not have to take their first RMD until the year they reach age 72.The Coronavirus, Aid, Relief and Economic Security (CARES) Act waived
 RMDs during 2020 so seniors and retirees, including beneficiaries with 
inherited accounts, were not required to take money out of IRAs and 
workplace retirement plans. The waiver included RMDs for individuals who
 turned age 70½ in 2019 and took their first RMD in 2020.Individuals who reached age 70 ½ before 2020 and were still employed,
 but terminated employment in 2020, would normally have a 2020 RMD due 
by April 1, 2021, from their workplace retirement plan. This RMD is also
 waived as part of the CARES Act relief. <a href="https://www.irs.gov/retirement-plans/roth-iras">Roth IRAs</a> do not require withdrawals until after the death of the owner.<h2>2021 RMDs</h2>Individuals who reached 70 ½ in 2019 or earlier, did not have an RMD 
due for 2020. For 2021, they will have an RMD due by Dec. 31, 2021. 
Individuals who did not reach age 70 ½ in 2019 will reach age 72 in 2021
 will have their first RMD due by April 1, 2022, and their second RMD 
due by Dec. 31, 2022. To avoid having both amounts included in their 
income for the same year, the taxpayer can make the first withdrawal by 
Dec. 31, 2021, instead of waiting until April 1, 2022. After the first 
year, all RMDs must be made by Dec. 31.An IRA trustee must either report the amount of the RMD to the IRA 
owner or offer to calculate it for the owner. Calculating the amount of 
the RMD depends on the type of IRA or if they are from multiple 
accounts. Not taking a required distribution, or not withdrawing enough,
 could mean a 50% excise tax on the amount not distributed.<h2>Some can delay RMDs</h2>Though the April 1 deadline for taking the first RMD is mandatory for
 all owners of traditional IRAs, participants in workplace retirement 
plans who are still working usually can, if their plan allows, wait 
until April 1 of the year after they retire to start receiving 
distributions from these plans. Individuals who reached age 70 ½ before 
2020 and were still employed, but terminated employment in 2020, would 
normally have a 2020 RMD due by April 1, 2021 from their workplace 
retirement plan. This RMD is also waived as part of the CARES Act 
relief.Employees of public schools and certain tax-exempt organizations 
should check with their employer, plan administrator or provider to see 
how to treat these accruals.<h2>Coronavirus-related distributions and loans</h2>The CARES Act made it easier to access savings in IRAs and workplace 
retirement plans for those affected by the coronavirus. This relief 
provided favorable tax treatment for certain withdrawals from retirement
 plans and IRAs, including expanded loan options.Distributions: Certain distributions made from Jan. 1, 2020, through Dec. 30, 2020, from IRAs or workplace retirement plans to <a href="https://www.irs.gov/newsroom/coronavirus-relief-for-retirement-plans-and-iras#collapseCollapsible1600782435546">qualified individuals</a> may be treated as <a href="https://www.irs.gov/newsroom/coronavirus-relief-for-retirement-plans-and-iras#collapseCollapsible1600782435464">coronavirus-related distributions</a>.
 These distributions are not subject to the 10% additional tax on early 
distributions (including the 25% additional tax on certain SIMPLE IRA 
distributions).Taxes on coronavirus-related distributions are includible in taxable income:<ul>
 <li>Over a three-year period, one-third each year, or</li><li>If elected, in the year you take the distribution.</li>
 </ul>Coronavirus-related distributions may be repaid to an IRA or workplace retirement plan within three years.If you had an outstanding loan balance in when you left employment, 
the plan sponsor will usually offset the loan balance against your 
benefit.<ul>
 <li>For loan offsets in 2020, you have until the due date of your 
tax return (plus extensions) to repay that amount to another retirement 
plan or IRA.</li><li>If you're a qualified individual, you can treat the loan offset as a
 coronavirus-related distribution and have three years to repay to an 
IRA or include in income tax ratably over three years.</li>
 </ul>RMDs: An IRA owner or beneficiary who received 
an RMD in 2020 had the option of returning it to their account or other 
qualified plan to avoid paying taxes on that distribution. RMDs in 2020 
that were not rolled over or repaid may be eligible to be treated as 
coronavirus-related distributions if the individual is a qualified 
individual. A 2020 RMD that otherwise qualifies as a coronavirus-related
 distribution may be repaid over a 3-year period or have the taxes due 
on the distribution spread over three years.A withdrawal from an inherited IRA to a qualified individual may also
 be a coronavirus-related distribution. Income from the withdrawal may 
be spread over three years for income inclusion; however, the withdrawal
 may not be repaid to the inherited IRA.IRS <a href="https://www.irs.gov/pub/irs-drop/n-20-51.pdf">Notice 2020-51&nbsp;PDF</a>
 provided that the one rollover per 12-month period limitation and the 
restriction on rollovers to inherited IRAs did not apply to repayments 
made by Aug. 31, 2020. The RMD suspension did not apply to qualified 
defined benefit plans.The CARES Act included special rules for plan loans made to qualified
 individuals. Plans could suspend loan repayments for up to one year, 
although, typically, repayments resumed in January 2021. This 
effectively gives up to six years (instead of five) to repay a typical 
plan loan.<h2>IRS online tools and publications can help</h2>Taxpayers can find answers, forms and instructions and easy-to-use tools at IRS.gov.<ul>
 <li><a href="https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions">FAQs regarding Required Minimum Distributions</a></li><li><a href="https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras">Individual Retirement Arrangements (IRAs)</a></li><li><a href="https://www.irs.gov/publications/p590b">Publication 590-B, Distribution from Individual Retirement Arrangements (IRAs) </a></li><li><a href="https://www.irs.gov/newsroom/coronavirus-relief-for-retirement-plans-and-iras">Coronavirus Relief for Retirement Plans and IRAs</a></li>
 </ul>

IRS reminds taxpayers of recent changes to retirement plans