While most solo 401k owners who are 70 ½ or older will need to take a 2018 required minimum distribution (RMD) by December 31, 2018. However, that deadline does not apply to all solo 401k owners. Solo 401k owners who are age 70 ½ or over are not required to be take an RMD from their solo 401k by the upcoming December 31 deadline if you just reached 70 1/2 in 2018. Generally, when you reached age 70 ½ you must take an RMD. However, for the first year you catch a break. You do not have to take your 2018 RMD until your Required Beginning Date (RBD) which is April 1, 2019. This is only a one-time exception. All future Solo 401k RMDs must be taken by December 31. However, there is a downside to waiting until 2019 to take your 2018 RMD. You will need to take your RMD for 2018 by April 1 and the 2019 RMD for your second distribution calendar year by December 31. That means two taxable distributions, which would need to be included in income so you won’t be able to spread your tax liability over 2018 and 2019 if you took your 2018 RMD in 2019.
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