67°F
weather icon Clear

Deadline approaching for retirees

The Internal Revenue Service reminds retirees born before July 1, 1949, that they usually must take distributions from their retirement plans by Dec. 31.

The payments, called required minimum distributions (RMDs), are normally made by the end of the year. Those who turned 70½ in 2019 are allowed to wait until April 1, 2020, to take their first RMDs, the IRS said in a Dec. 10 news release.

The special April 1 deadline only applies to the RMD for the first year. For all subsequent years, the RMD must be made by December 31. For example, a taxpayer who is 70½ in 2018 and receives the first RMD on April 1, 2019, must receive a second RMD by December 31, 2019.

The required distribution rules apply to:

Owners of traditional Individual Retirement Arrangements (IRAs)

Owners of traditional Simplified Employee Pension (SEP) IRAs

Owners of Savings Incentive Match Plans for Employees (SIMPLE) IRAs

Participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans

Roth IRAs don’t require distributions while the original owner is alive.

An IRA trustee, or plan administrator, must report the amount of the RMD to the IRA owner. Alternatively, an IRA trustee may offer to calculate the amount of the RMD for the owner.

An IRA owner, or trustee, must calculate the RMD separately for each IRA owned. However, they can choose to withdraw the total amount from one or more of the IRAs. In contrast, RMDs required from workplace retirement plans must be taken separately from each account.

The RMD is based on the taxpayer’s life expectancy and their account balance.

Find more information on RMDs, including answers to frequently asked questions, on IRS.gov

Don't miss the big stories. Like us on Facebook.
THE LATEST
Meet the 12 contestants competing for the 2023 Miss Pahrump crown — PHOTOS

The Miss Pahrump Pageant will take place Saturday, June 3 at 6:30 p.m. inside the Saddle West Showroom. Doors will open at 6 p.m. Tickets are $10 for general admission or $15 for VIP tickets. To reserve a ticket contact the organization at MissPahrumpPageant@gmail.com.

Halcyon CEO: Plan to build hydrogen plant in Nye differs from other proposals

While Halcyon’s proposal has similarities to other energy projects in the region, company CEO Monte Burton said it includes key differences, including a contractual guarantee that would return a percentage of the company’s profits to the community.

Pahrump doctors could get their day in court

A Nye County judge has agreed to hear claims in a case filed by two Pahrump clinicians against P3 Health Partners Inc. which acquired their local practice in a multimillion-dollar deal before shutting down their clinic.

Gone but never forgotten: A salute to America’s fallen heroes

VFW Post #10054 hosted its Memorial Day Ceremony on Tuesday, with several dozen area residents, both veterans and civilians alike, gathered beneath the pergola for the morning ceremony.

Nye County school superintendent to leave district in June

A Nye County resident said he felt the school district had recovered from the pandemic slower than the rest of the state under the superintendent’s leadership.