Questions to Ask About Self-Employed RMDs

Can a self-employed person delay required minimum distributions from a SEP-IRA retirement account because the person is still working?

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

• IRS: Retirement plan and IRA required minimum distributions FAQs
  • https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
    • Related column excerpt: 
      • “Quoting from an IRS FAQ on RMDs for retirement plans and IRAs, ‘Owners of traditional IRA, and SEP and SIMPLE IRA accounts must begin taking RMDs once the account holder is age 73, even if they’re retired.’”
      • “Again, quoting from the IRS FAQ, ‘If an account owner fails to withdraw the full amount of the RMD by the due date, the amount not withdrawn may be subject to an excise tax of 25%, 10% if the RMD is timely corrected within two years. The account owner should file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, with their federal tax return for the year in which the full amount of the RMD was required, but not taken.’”