The normal required minimum distribution (RMD) for 2021 has to be taken by Dec. 31.

The RMD for 2021 is based on your retirement account(s) balances as of Dec. 31, 2020, divided by your life expectancy — a table that is set by the IRS.

The normal age distributions are required is the year in which you turn 70½, however, if you turn age 70½ in 2020 or later then your RMD age is 72.

If you fail to take your RMD timely then there is a large penalty, 50 percent of the amount you should have taken out in 2021 and didn’t. Be sure and check with your investment advisor to make sure you take the right amount of RMD and take it timely.

The maximum contribution to an IRA account for 2022 remains at $6,000 with the catch-up (additional amount you can contribute if you are 50 years old or older) of $1,000. These are the same amounts as 2021 year amount are.

For 401(k) retirement amounts for 2022, the maximum contribution amount is $20,500. The catch-up amount for 2022 is $6,500.

For SIMPLE retirement accounts the 2022, the maximum is $14,000. The catch-up amount is $3,000, which is the same amount as it was for 2021.

For businesses and others that normally filed Form NC-3 and W-2s and 1099 by paper, the state Department of Revenue now requires that NC-3 and the related statements to be filed electronically in a format prescribed by the secretary of state. If the Form NC-3 and related statements are not filed electronically, there is a $200 penalty that will be assessed for not filing in the electronic format required.

The state Department of Revenue has three filing options with the eNC-3: Web File Upload, Manual Entry and an Excel Option. You can go to the Department of Revenue website,, to find out more information on this new requirement.

If you have a payroll service preparing your payroll checks and you have been electronically filing some of your payroll reports, they should take care of this new requirement for you — however, be sure and check to make sure. If you have a payroll program you are using inside of your business operations, make sure that software will handle this new requirement for you.

Whatever payroll and 1099 system you are using check before January to make sure you have the required process in place and ready to go. There may be an additional fee depending on the system you are using in order to electronically file these forms.

Once again, remember during these challenging times please continue to support your local restaurants and other small businesses. Stay safe and healthy and have a blessed Thanksgiving and Christmas.

The information in this article is general in nature and should not be acted upon without first checking to determine its applicability to your situation.

Mary Currie is a certified public accountant practicing in Rocky Mount.