First RMD
I have a mental block on the first RMD. I’ll be 70 on December 15, 2008 and thus 70.5 in 2009. Can I take my 1st RMD anytime in 2008 and have it qualify or must I wait until after my 70th birthday? I want to avoid having to take two RMD’s in the same year. Am I correct that if I wait until 2009 (age 70.5) to take my 1st RMD then I must take two RMD’s in 2009, the second AFTER December 15, 2009? Are there any on-line calculators where you can put in your birthdate and it’ll show you the dates and options that you have for taking the first RMD?
Permalink Submitted by Edward Czapor on Mon, 2008-04-14 13:53
Since you will turn 701/2 in 2009, your first RMD is required for the year 2009. This could be delayed up to April 1 2010, but then two distributions would be required in 2010 which you want to avoid. You should then take your first RMD in 2009. A distribution in 2008 would not satisfy any RMD.
Your first RMD will be based on your age of 71 at the end of 2009. The factor from the Uniform Lifetime table of 26.5 will be used to calculate the RMD amount by dividing the year end 2008 balance of all traditional IRA’s, including any SEP or SIMPLE IRA’s by this factor.
ED C