REQUIRED MINIMUM DISTRIBUTION
I am 86 years old and retired in July 2015. I have a 401K and have not yet
completed a direct rollover .Is there any way to avoid a required minimum distribution
pertaining to calendar year 2015.
Thank you very much
I am 86 years old and retired in July 2015. I have a 401K and have not yet
completed a direct rollover .Is there any way to avoid a required minimum distribution
pertaining to calendar year 2015.
Thank you very much
Permalink Submitted by Alan - IRA critic on Mon, 2015-11-16 16:15
No, your retirement in 2015 made 2015 an RMD distribution year. However, your required beginning date for that RMD is 4/1/2016, so you could defer the 2015 RMD to 2016 if you also postpone the direct rollover till 2016. That would result in two RMDs being taxable in 2016 and not included in the direct rollover. If you want to balance your taxable income for each year, you can also consider taking a portion of the 2015 in 2015 and defer the rest to early 2016, and that would also require you to postpone the direct rollover to 2016. The optimum balance depends on the amount of these RMDs and the amount of your other taxable income for each year. But there is no way to avoid the 2015 RMD, you just have flexibility on when to take it if you do not do the direct rollover until 2016.