Does this distirubtion satisfy RMD?
Someone turned 70.5 in 2011. They are retired, thus there is no special exclusion. Normal required beginning date would be April 1st 2012, but they would then have to take 2 distributions in 2012.
Seeing this was going to be the case, the individual calculated and took his 1st RMD in 2011. However he took the RMD in July but wasn’t really 70.5 until August. Is this a problem or so long as it was done “in the year in which he turned 70.5” it satisfies the RMD requirement?
Thanks
Permalink Submitted by Alan Spross on Thu, 2012-02-16 20:02
It is NOT a problem. Any distribution taken in the year a taxpayer reaches 70.5 is applied to the first RMD. It can be taken either before or after the actual 70.5 date.