RMD calculation
Is it possible to use a 60 day rollover of an IRA to “control” the RMD calculation for any given year after 70.5?
By taking one large IRA distribution at the end of a tax year (prior to Dec 31) the IRA balance on Dec 31st would be lowered thus impacting the RMD calculation for the next year. Returning (rolling over) the distribution within 60 days would return the balance to where it was.
Am I missing something here?
Permalink Submitted by David Mertz on Wed, 2016-12-07 20:16
This doesn’t work. When calculating the RMD, the outstanding rollover amount is required to be added back to the year-end balance before dividing by the distribution period.