Knowing when to commence or to continue to take Required Minimum distributions can be quite confusing, as the dates vary based on when your first reach age 72 and if you have already been making RMDs. We’ve put together the following post to help solo 401k participants understand the RMD deadlines.
Existing (Ongoing Distributions)
For those who have already been making Required Minimum Distributions (RMDs) in prior years, the 2022 solo 401k RMD must be paid no later than December 31, 2022.
New (First Time Distribution) & Turn 72 Prior to July 01, 2022
Those who turn age 72 in 2022 prior to July 1, 2022 (so between January 1, 2022 and June 30, 2022) are required to make their first solo 401k RMD by the end of this year, so December 31, 2022.
New (First-Time Required Minimum Distribution) & Turn 72 After June 30, 2022
Those who turn age 72 in 2022 AFTER June 30, 2022 (so between July 1, 2022 and December 31, 2022) are required to make their first solo 401k RMD by April 1, 2023. Of course, the account holder may also make the distribution in 2022 by 12/31/2022 but is not required to do so.
Take an RMD this year QUESTION
However, if you wait to make your first RMD (the 2022) until April 1, 2023, you will end up taking two RMDs in 2023 (the one for 2022 & the second one for 2023), with the 2023 having to be distributed by 12/31/2023.
