Allison and Luther are both elderly but active employees who have contributed their entire careers into traditional IRAs. Allison turned 70 1/2 on September 1st, 2019. Luther turns 70 1/2 on April 14th, 2020. Neither have taken any distributions from their IRAs. For the past two years, TY2019 and TY2020, they opted not to file their tax returns because they believed that their income was below the filing threshold. For TY2021, which of the two are required to have distributions from their IRAs due to the RMD rules?

Allison and Luther are both elderly but active employees who have contributed their entire careers into traditional IRAs. Allison turned 70 1/2 on September 1st, 2019. Luther turns 70 1/2 on April 14th, 2020. Neither have taken any distributions from their IRAs. For the past two years, TY2019 and TY2020, they opted not to file their tax returns because they believed that their income was below the filing threshold. For TY2021, which of the two are required to have distributions from their IRAs due to the RMD rules?

Select one:

a. Both should have been taking RMDs in TY2019 and should have filed in TY2019, TY2020, and will have file in TY2021.

b. Allison should have been taking an RMD in TY2019, but Luther could wait until he'd turned seventy-two (72) and they would both be taking RMDs in TY2021.

c. Neither, since RMDs are paused for TY2021.

d. Neither, as RMDs have been repealed for TY2020 onwards.