1st Year RMD Delayed until 3/30 of the 2nd year
I turned 70.5 in May 2013.
2013 is the 1st year I must take an RMD.
If I delay the 2013 RMD until March 30 of 2014, do I adjust the 12-31-13 value of the IRA when calculating the 2014 RMD since the 2013 RMD is still in the IRA?
Or, do I just calculate the 2014 RMD using the 12-31-13 IRA value and ignore the fact that I didn’t withdraw the 2013 RMD in 2013.
Permalink Submitted by Alan - IRA critic on Wed, 2013-09-25 18:45
The latter. The 2002 IRS RMD Regs eliminated the adjustment that used to be required in the interests of simplification. Therefore, if you delay the 2013 RMD, your 2014 RMD will be based on a value that is almost 4% higher than it would have been had you completed the 2013 RMD by 12/31. Also, note that you can take any proportion of your 2013 RMD in 2013 you want to in order to make your total taxes for the two years as low as possible. It does not have to be all or none.
Permalink Submitted by Robert Wright on Thu, 2013-09-26 07:35
As always, thank you.