by Deborah Ritz
I have received my first MRD. Which line of the 1040 do I use to report this income?
Minimum required distributions, or MRDs, are mandatory, minimum yearly withdrawals that generally must be taken starting in the year you turn 70-and-a-half.
While there is a minimum amount you are required to withdraw in order to avoid severe penalties, you can always take more than the MRD amount.
You generally have to take MRDs from any retirement account in which you contributed tax-deferred assets or had tax-deferred earnings.
These accounts include: Traditional IRAs, Rollover IRAs, SIMPLE IRAs, SEP IRAs, Most Keogh accounts, Most 401(k) and 403(b) plans.
The type of account the income is withdrawn from determines what line on the 1040 the income is reported.
If the MRD is from an IRA the gross withdrawal is reported on 15a with the taxable amount on 15b.
In the case of a Keogh or 401(k) or 403(b) the gross withdrawal is reported on 16a and the taxable amount on 16b.
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