Calculate 2 RMDs in one year (1st and 2nd RMD)
I will be 70.5 next April (4/2013), and I plan to take my first RMD in March 2014, I understand I have to take another RMD by December 31, 2004. But how do I calculate the 2 RMDs ? Both based on the total IRA value at December 31, 2013 ? or the second RMD can be based on less (less first RMD) IRA value ?
Permalink Submitted by mk foss on Sun, 2012-09-16 22:57
Your first distribution is based on the value 12/31/12 whether you take it in 2012 or early in 2013. The second distribution is based on the 12/31/13 value and not adjusted for the first distribution.
Any distributions taken in the year you reach age 70-1/2 are considered part of the RMD until it is satisfied and cannot be rolled over. In other words, if you want to take your first RMD in March 2014, you cannot do a Roth conversion or roll over a 2013 distribution in 2013.
Permalink Submitted by Cima Locert on Sun, 2012-09-16 23:56
Thanks for the response, but I am going to take my first RMD in March 2014, not 2012 or 2013. (I will be 70.5 in April 2023). Looks like you are talking about one year earlier. so if I take my first RMD in March 2014, do I still base on 12/31/2012’s IRA value ?
Permalink Submitted by Alan Spross on Mon, 2012-09-17 02:43
Yes, your RMD for 2013 is based on the 12/31/2012 value no matter when you take it. Your RMD for 2014 is based on the 12/31/2013 value regardless of when you took the 2013 RMD.
Permalink Submitted by Cima Locert on Mon, 2012-09-17 12:08
Just to make sure I understand this fully. In my case, I will reach 70.5 on April 5, 2013, if I take my 1st RMD on March 10, 2014, do I base on my IRA value at 12/31/2012 or 12/31/2013 ?? Thanks.
Permalink Submitted by Alan Spross on Mon, 2012-09-17 16:22
12/31/2012 value.
Permalink Submitted by Cima Locert on Mon, 2012-09-17 16:59
This answered my question, Thanks a lot.