Hello,

Assume a client’s DOB is 04/15/45. His wife is 2 years younger and the primary beneficiary of his IRAs. Client turns 70 1/2 in 2015. Accordingly, his first RMD is not required to be taken until 04/01/16.

However, if client takes the first RMD in 2015, he would use his 12/31/14 IRA account balances and a 27.4 distribution period for age 70.

To the extent client took his first RMD by 04/01/16, he would use his 12/31/15 IRA account balances and a 26.5 distribution period for age 71.

I just want to confirm the above (especially in light of the below).

Separately, in an InvestmentNews Article from today entitled, “Help clients avoid first-time RMD errors,” Ed said that, “If a client turned age 70 1/2 in 2014, her beginning date is April 1, 2015, but her RMD calculations is based on her IRA balance on Dec. 31, 2013.” In this example, why wouldn’t the IRA balance used be the Dec. 31, 2014? This would mean that, whether the first RMD is taken in 2014 or 2015, either way the same value date (12/31/13) would be used. Please confirm, as well well as where in IRS Publication 590-B (Year 2014) does it confirm the above?

Thank you. Jason