You Know RMDs, But Do You Know RBDs?

You’re probably familiar with what a required minimum distribution (RMD) is, but do you know what a required beginning date (RBD) is? If you guessed that it’s the date that you begin taking your RMDs, then you are spot on. Knowing your RBD–and any associated options–can be almost as important as knowing how much you need to take out for your RMD. If you have an IRA, your RBD is April 1 of the year following the year in which you turn 70 1/2. There are no exceptions to that rule, unfortunately. However, if you have an employer plan (i.e. a 401(k)), you may be able to push back your RBD if you continue working or if you have a 403(b), you may be able to push back the RMD start date under the “old money” exception. If you have both an IRA and a retirement plan through an employer, then you may have more than one RBD, depending on whether you intend to take advantage of a “still working” exception or not. If you have questions about your RBD or are interested in discussing whether you may be able to delay it, you should speak with a certified financial planner or with your plan custodian.