Riley participates in his employer's 401(k)plan. He retired in 2020 at age 75. When must Riley receive his distribution pertaining to 2020 to avoid minimum distribution penalties?

Question

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Riley must receive his distribution pertaining to 2020 by April 1, 2021, to avoid minimum distribution penalties. This is because the SECURE Act changed the age for required minimum distributions (RMDs) from 70½ to 72 for individuals who turned 70½ after December 31, 2019. However, if an individual turned 70½ before that date, the old rules still apply, and they must take their first RMD by April 1 of the year after they turn 70½, which in Riley's case would be April 1, 2021.

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