Nua used for rmd
Hi
If we use nua when taking a distribution from a 401k can we use the cost basis for rmd. Can we use the nua portion also for rmd.
Hi
If we use nua when taking a distribution from a 401k can we use the cost basis for rmd. Can we use the nua portion also for rmd.
Permalink Submitted by Alan - IRA critic on Fri, 2015-08-21 16:06
Yes, both apply toward the RMD, more simply any amount included in Box 1 of the 1099R. Once RMDs begin, the year of the first RMD distribution is the final chance to utilize RMD, otherwise the RMD would constitute an intervening distribution. It might be worth considering delaying the LSD and the first RMD to the required beginning date year if the share distribution will be enough to cover the RMD for both the first and second distribution years.