Riley participates in his employer's 401(k)plan. He turns 72 years of age on February 15, 2019, and he plans on retiring on July 1, 2021. When must Riley receive his first distribution from the plan to avoid minimum distribution penalties?

Question

Quizplus · Accepted Answer

Riley must take his first required minimum distribution (RMD) by April 1 of the year following the year he retires, since he is over 70½. Since he plans to retire in 2021, his first RMD must be taken by April 1, 2022.

Riley Participates in His Employer's 401(k)plan