In the area of IRAs, what is the meaning of the required beginning date?
A. This date (the “RBD”) is the date when certain amounts must be taken out of the IRA from that time on. These withdrawal amounts are referred to as “minimum required distributions” (“MRD”). Since IRA participants may wait until April 1st of the year following the year in which they turn age 70, then the period which begins January 1 of the year the participant reaches age 70 and which ends on April 1 of the following year (the “RBD”) is called the “limbo period”. In the year a person reaches age 70, he cannot make a rollover to an IRA from a plan (or another IRA) until after he has withdrawn the MRD from the plan or the IRA, and he is unable to convert a traditional IRA to a Roth IRA until he has withdrawn the MRD from the traditional IRA. If a person dies during the limbo period, without having taken the MRD, the obligation to make those distributions is cancelled and the first required distribution will be the post-death distribution. Q.
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