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
Permalink Submitted by Alan - IRA critic on Fri, 2016-03-18 23:31
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 Any amount deferred must be withdrawn by 4/1/2017. And the 2017 RMD must be withdrawn by 12/31/2017.