RMD for a 2011 SEP funded this year
And indiviual, age 72, has earned income from his business and establishes a SEP in 2012 for his 2011 earnings. He will also contribute for 2012.
He contributes to the SEP and files his taxes in October 2012 for the tax year 2011.
Does this person have an RMD obligation for 2011 (being well over 70-1/2)? If so, what would the RMD value be based on since there was no SEP account value on 12/31/10.
Does he have an obligation for 2012 due by his tax filing in the following year? Same issue here since he had no SEP account value on 12/31/11.
Permalink Submitted by Alan Spross on Wed, 2012-11-14 20:57
There is no RMD for any year on which the IRA value was 0 on the prior 12/31. SInce it was 0 for year end 2010 and 2011, there is no RMD for 2011 or 2012.