A reminder for some of the elderly population about a requirement that was postponed from 2020 has returned for tax purposes this year.

Certified Public Accountant with Henkel and Associates Tom Kennedy says the federal government waived the minimum required distribution from those who were at least 70.5 years old in 2020 and with the new cut-off of 72 this year, are once again needing to make those distributions from their retirement plans.

“If they’ve kind of forgotten about that and need to make sure that they get that done by December 31st because there’s some pretty hefty penalties if you don’t make that required minimum distribution. So just talk to your financial person if they’re the ones that take care of it.” 

Kennedy notes the two main retirement plans that the minimum required distributions apply towards are the traditional Individual Retirement Account (IRA) and 401k plans.