WHY TWO IRA RMD’S WHEN YEAR AFTER 701/2

CLIENT TURNS 70 IN MAY THIS YEAR SO SHE WILL BE 70 1/2 AS OF NOVEMBER IN THE SAME YEAR. IF ITS A YEAR AFTER 70 1/2 WHY…

A. DOES SHE HAVE TO TAKE OUT A RMD THIS YEAR OR IF SHE WAITS UNTIL 2017 SHE HAS TO TAKE 2016 BEFORE APRIL 1 2017 AND THEN HER 2017 BY YEAR END?

B. IF YEAR AFTER TURNS 70 1/2 SHE SHOULD ONLY HAVE TO TAKE OUT 2017 RMD…AM I CORRECT OR IS “A” CORRECT ABOVE?

THANK YOU,
DOUGLAS



A is the closest. In 2016 she can take out any portion of the 2016 RMD she wants, including nothing. Any amount deferred must be withdrawn by 4/1/2017. And the 2017 RMD must be withdrawn by 12/31/2017.

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