Advanced Underwriting Consultants

Ask the Experts – April 21

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: My client is age 72 and has been taking RMDs from his IRA for a couple of years now. When he retires later this year, he will also be required to take RMDs from his employer-sponsored Section 403(b) annuity. When is his deadline to take the 2014 RMD for the employer-sponsored plan?

Answer: If your client retires this year, he is required to take the 2014 RMD by April 1, 2015. Any subsequent RMDs must be taken by December 31 of the year for which the RMD is required.

The fact that your client is already taking RMDs on his IRA does not affect the deadline to take his first RMD from the employer-sponsored plan. Therefore, your client should take his IRA RMD by December 31, 2014, and his 403(b) RMD by April 1, 2015.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.