 Internal Revenue Service, IRS Tax News, reminder to many retirees, last date to start taking money out of IRS and 401Ks is April 1st. IRS has reminder to retire. Yes, it's the same reminder they have for all of us. We're watching you. Just remember, the IRS is watching you. What's your hurry? What's going on? I got a special delivery here, Mark Durge. I'm watching you, Foster. Just remember every minute. God is watching you. I mean, honestly, like the IRS is like an out of control five-year-old demanding their allowance. So like, get that money out of your retirement accounting, give it to us, or possibly they're more like it like an out of control 40-year-old demanding their allowance, except that the IRS child has gotten massively large from gorging on candy to the point where they could quite possibly crush you if they ever got so fat that they couldn't stand up anymore and they ended up like rolling over on you or something, you know? It's quite scary. I mean, it's going to be difficult to tell this kid to stop feeding his face after he's been pampered for so long, but I feel we have the moral obligation to do so. It's like, okay, government, you want a bigger allowance? I mean, what did you spend the last $31 trillion we gave you on for crying out loud? And the government looks down, shuffles his pudgy feet, which he hasn't been able to see for nigh on four score and seven years ago. As he says, nothing, I didn't spend, I swear I didn't spend the money on anything. And so it's like, wait a second, what are you saying government, that the money just disappeared like the trillions of dollars just disappeared? And then as they look around attempting to find support from their pampering old grandpa, they're like, we totally spent the money to like eradicate all viral diseases everywhere worldwide. It's like, okay, so you're telling me government, you spent the money to keep us safe from diseases. Is that what you're telling me? Do you think that Dr. Fauci intentionally lied under oath to Senator Paul when he vehemently denied NIH's funding of gain of function research? I think there's no doubt that NIH was funding gain of function research. Is it likely that American tax dollars funded the gain of function research that created this virus? I think it did not only from NIH, but from the State Department, USAID and from DoD. There seems to be some discontinuity, a bit of inconsistency with the stories little government or, you know, big fat bloated government, I should say is telling us I've noticed. I mean, possibly even some deception is going on here. I'm starting to feel like there might be a little bit of deception. We've got to tell the truth. When you don't tell the truth, you've got a problem. And I think if you go back, there were many times when public health officials packaged the message to what they wanted to say, but it wasn't necessarily truthful. Honestly, I'm starting to think this bohemian blubbering beast of a government may actually benefit from going on a diet even. I mean, how can that be? Could the fat positivity movement actually be wrong? But then when you finally force the government child to admit their line, instead of taking initiative to correct a course, they attempt to take the insanity defense claiming they have like climate related mental health issues or something. Climate mental health. I said, tell me what's going on with your peers. Climate mental health. Which means, of course, that they need more money, which is obviously a claim laden with all kinds of deception. How dare you. So, you know, we start the process. We start the process over again, I guess. I are 2023-43, March 9, 2023, Washington, the internal revenue service today reminded retirees who turned 72 during 2022 that in most cases, Saturday, April 1, 2023 is the last day to begin receiving payments from individual retirement arrangements. Those are the IRAs 401Ks and similar workplace retirement plans. So remember the general idea of the retirement plans is usually you get a tax benefit when you put the money into the retirement plan, but it's really a deferral. And when you take the money out, then you're going to have to be paying taxes at the point in time that you take it out, and the IRS is going to require people to take the money out at some point in time in the future because they want to get paid at some point. So that's the general idea. So payments called required minimum distributions, RMDs are normally made by the end of the year. But anyone who reached age 72 during 2022 is covered by a special rule that allows IRA account owners and participants in workplace retirement plans to wait until as late as April 1, 2023 to take their first RMD. So if you're waiting on that, if you're in that particular situation and you're waiting as long as you can on it, then you want to make sure that you're in compliance so that you're not having any penalties related to not taking out your required minimum distributions. The IRS wants you to take the money out, of course, because then it will be taxable income and they want to get paid at that point. So in other words, in general, the special April 1 rule applies to IRA owners and other participants in these plans who were born after December 31, 1949, two payments in the same year. The April 1 RMD deadline only applies through the required distribution for the first year. For all later years, the RMD must be made by December 31. This means that taxpayers who receive their first required distribution for 2022 and 2023 on or before April 1 must receive their second RMD for 2023 by December 31, 2023. So if you have that special rule going into effect that kind of pushes that first date out, then you're going to have the squishing together of the next date to be back on the normal date horizon after that point. So even though the first distribution is actually the required 2022 distribution, it's taxable in 2023 and reported on the 2023 tax return along with the regular 2023 distribution. So hopefully, you can get that straightened out with your tax plan and your CPA as well as your financial institution so that you get the documentation, the 1099R and whatnot, properly applied to the proper period so that we have the proper categorization of the distribution to the right year in the proper category. So types of retirement plans required MNDs. These required distribution rules apply to owners of traditional SEP steps and simple IRAS. While the original owner is alive, they also apply to participants in various workplace retirement plans, including the good old 401K, 403B and 457B plans. RMDs don't apply to Roth IRAs. Remember, the Roth IRAs are kind of like the reverse of the normal IRA. So you would think the government doesn't have the same kind of incentive to force you to take the money out of the Roth IRA because you pay the benefit when you put the money into the Roth IRA. So it's a little bit different of a scenario there. So the IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it. Often the trustee shows the RMD amount on Form 5498 in Box 12B for a 2022 RMD required by April 1st, 2023. The RMD amount is shown on the 2021 Form 5498 normally issued to the owner during the first part of 2022. Some can delay RMDs, though the April 1st deadline is mandatory for all owners of traditional IRAs and most participants in workplace retirement plans. Some people with workplace retire workplace plans can wait longer to receive their RMD. That sounds interesting. Tell me more. Most participants who are still working for that employer can wait until April 1st of the year after they retire to start receiving these distributions if their workplace retirement plan allows. This RMD exception does not apply to 5% owners of the business sponsoring the retirement plan. There's a link to that here to participate in SEP and simple IRA plans. See tax on excess accumulation in publication 575. There's a link to that here for details. Employees of public schools and certain tax exempt organizations with 403B, that's typically the kind of 401K related plan for government employees such as if you teach in a public school, for example, accrues before 1987 should check with their employer plan administrator or provider to see how to treat these accruals. IRS online tool and publications can help. Many answers to questions about RMDs can be found at RMDFAQs. There's a link to that here on irs.gov. A lot of three letter stuff right there. So RMDFAQs on irs.gov. Any case. Most taxpayers use table 3 uniform lifetime to figure their RMD. Marry taxpayers whose spouse is more than 10 years younger. And is there only beneficiary use table two for 2022 RMD do April 1st 2023 use the life expectancy tables and appendix B of the publication 590 B. There's a link to that here distributions for individual retirement arrangements or iras IRAs as shown in table three, the RMD for a person age 72 in 2022 will normally be based on distribution period of 27.4 years divide the December 31st 2021 balance by 27.4 to get the RMD for 2022. So the basic idea here of course being the iris wants to get the money before you die so they don't have to come after you and pick it out of your corpse with the with the death tax or the estate tax they want to get it before that time. So that means that they're going to try to get your average life expectancy and then you figure that out and then you basically are going to have to apply the amount that you're going to have to take out during that time so that the iris gets their gets their money before you before you go before you go go. Don't you know no. Anyways publication 590 B has worksheets examples and other information that can help anyone figure their RMD new age 73 rule starts in 2023 for those planning ahead starting in 2023 retirees can wait until age 73 there's a lot of rhyming going on here to begin receiving RMDs I gotta read that sentence for for those planning ahead starting in 2023 retirees can wait until age 73 to begin receiving their RMDs that just rolls off the tongue right there visit irs.gov for more information on this and other changes affecting retirees and retirement plan participants so there's a link to this here in the description so you can check it out if you want more detail on it.