Although your RMD can’t be reinvested back into a tax-advantaged retirement account, you can put money into taxable brokerage accounts and then reinvest your RMD proceeds according to a strategy that fits your needs.

Are defined benefit plans subject to RMD rules?

Defined benefit plans and cash balance plans (a type of defined benefit plan) are subject to these rules just like IRAs and other qualified plans are. But there is one significant consideration. Only the vested amounts are subject to RMDs, while non-vested balances are not.

Do I have to take an RMD from my defined benefit plan in 2020?

If you reach 70½ in 2020, you have to take your first RMD by April 1 of the year after you reach the age of 72. For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31 of the year.

How does the new age 72 RMD work?

Questions are arising about how the SECURE Act’s new age 72 RMD (required minimum distribution) works, especially for those who are age 70 1/2 now. The complication is when, how and to whom the new age 72 mandate applies. (Tax laws determine the minimum you are required to take out of your retirement accounts).

When do I need to take my second RMD?

You’ll need to take all subsequent RMDs by December 31 each year—including your second RMD. So if you turned 70 in the first half of 2017, you can wait until April 1, 2018, to take the first withdrawal. But you’ll also need to take your second withdrawal—for age 71—by December 31, 2018.

When do I have to take my RMD If I was born in 1947?

People who were born in 1947 on July 1 or later don’t need to do anything yet. They will turn 70½ in 2018, so they’ll have to take an RMD by December 31, 2018 (but for their first one, they can delay until April 1, 2019). The April 1 extension applies only to your first RMD after age 70½.

Do you have to report both RMD’s in 2020?

If you are taking both your 2019 and 2020 RMDs in 2020, you’ll report both RMDs as income on your 2020 tax return. Since we’re still in age 70 ½ territory, you may want to read more about age 70 ½ RMD rules that currently apply to those who turned 70 ½ in 2019.