In 2016, approximately 2.5 million taxpayers turned 70 years old. In 2017, these baby boomers turned 70½. People with money in tax-deferred retirement accounts (other than Roth accounts) are required to begin taking distributions from these accounts at age 70½ and pay income taxes on those distributions. The yearly minimum distribution amounts are calculated using account values and ratios set forth in IRS tables of longevity. Exceptions and adjustments apply to surviving spouses, and different rates apply to nonspouses who inherit IRAs. This article provides guidance on these distributions.
Author: Alisha M. Harper, JD, LLM, was a senior attorney for the IRS Office of Chief Counsel for 8 years prior to becoming a full-time associate professor at Bellarmine University in 2012. Her areas of focus are tax practice and procedure, individual income taxation, flowthrough taxation rules, and online pedagogy. Alisha is a member of the Kentucky and Louisville bar associations.
Author: Jonathan P. Smith, CRPC, APMA, is a financial advisor at Encore Wealth Management Group, a private wealth advisory practice of Ameriprise Financial. Jonathan, along with two other advisors in the practice, focuses on comprehensive financial planning for individuals, businesses, and institutions, including advanced investment solutions.
Author: Patricia Miller Selvy, PhD, CPA, CGMA, has owned her own small business and worked in both industry and public accounting in addition to teaching at the University of Louisville and Bellarmine University. She has served on the Family Scholar House Board, the Audit and Finance Committees, and on the Kentucky State Parks Commission. Her areas of focus have been in teaching graduate courses in financial and managerial accounting, corporate governance, and state and local taxation, and undergraduate courses in financial and managerial accounting, individual and corporate taxation, as well as in the areas of auditing and theory. Her research focus has been in the areas of teaching pedagogy, state and local taxation, Social Security, and capital budgeting, among others. She is a Kentucky CPA and holds memberships in the AICPA and the Kentucky Society of CPAs.