Required Minimum Distribution (RMD)*

The end of the year is fast approaching, so now is the time to start thinking about tax planning for 2015. Owners of IRA accounts and participants in other retirement plan accounts (such as 401(k), 403(b) or 457(b) retirement accounts) should consider whether they may be required by the IRS to take a Required Minimum Distribution (RMD) for the 2015 tax year.

What is a Required Minimum Distribution?

The RMD is the minimum amount that an owner of an IRA account (or other retirement plan) must withdraw annually starting with their RMD required beginning date.
In most situations, the RMD is required beginning the year the owner reaches 70½ years of age. Generally, the RMD must be taken by December 31st of each year.
Although the RMD distribution for the first year can generally be delayed until April 1 of the year following the year in which an account owner turns age 70½, if this is done, then an account owner will need to take two distributions in the same calendar year in order to satisfy the RMD requirements. Because the RMD requirements can be complex, we encourage customers to speak with their accountant or other qualified tax advisor.

Let's look at an example:

Jane, an owner of a Traditional IRA, was born on February 20, 1946. Jane reaches age 70½ on August 20, 2016. For 2016 (the owner's 70½ year), Jane must receive the required minimum distribution from her Traditional IRA no later than April 1, 2017. Jane must receive the required minimum distribution for 2017 by December 31, 2017. If Jane delays taking her first year's RMD distribution until April 1, 2017, then this would result in two RMD distributions required in 2017. Additional information on RMDs is available on the IRS website at
If you have any questions for The Hartford, please call our Annuity Contact Center at 1-800-862-6668 Monday through Thursday, 8 a.m. to 7 p.m., or Friday, 9:15 a.m. to 6 p.m., Eastern Time.


* This material is provided for general informational purposes only. These materials are not intended to provide tax, accounting or legal advice. The information contained in this material cannot be used or relied upon for the purpose of avoiding IRS penalties. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

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