A Required Minimum Distribution (RMD) is a distribution made from an IRA or employer-sponsored retirement plan in order to satisfy IRS regulations.  The objective of RMDs is to begin to pay income tax on the money that has accumulated tax-deferred in your IRA or employer's retirement plan.

Generally, RMDs have to be taken on or before December 31 of each year beginning with the year you attain age 70½.

The IRS does provide a grace period for the first year of your RMD, therefore distributions can be taken as late as April 1 of the year following the year you reach 70½.  For example, if you attain age 70½ in 2011, you have until April 1, 2012 to take your RMD for 2011.  However, your RMD for 2012 must be taken before December 31, 2012.  So, if you opt to do this, you will take 2 RMDs within 1 calendar year.  All subsequent distributions must be taken before December 31 of that year.

Missing the RMD deadline, or withdrawing an insufficient amount, will cause you to incur an IRS penalty.  The penalty is 50% of the amount that should have been withdrawn.

You are not required to take a RMD until you separate from service.  However, if you are a participant in a SEP IRA or SIMPLE IRA, you must begin taking RMDs at age 70½, regardless of your employment status.

No, the number of hours worked is not a factor.  To show that you are still employed and not retired, you must receive a W-2 showing earned income from the employer sponsoring the plan within the same year that your RMD would be calculated.

You must calculate the requirement minimum distribution for each IRA separately.  However, you may withdraw the aggregate amount of your RMD from one IRA or one 403(b) account.  You would calculate all your IRAs together and all your 403(b)s together.  You cannot merge the two types of accounts.

Yes.  If you are still employed, you can roll the IRA over to a current employer 401(k) or 403(b) account.

Please contact Envoy Financial at 888.879.1376, option 1 or by email for assistance.