Age to begin taking RMD
I will be 70 in December of this year. Therefore I will be 70 1/2 in June of 2018. Does this mean I can delay my withdrawal until April of 2019?
I will be 70 in December of this year. Therefore I will be 70 1/2 in June of 2018. Does this mean I can delay my withdrawal until April of 2019?
Permalink Submitted by Steve Hagedorn on Thu, 2017-03-23 23:28
I believe (let Alan or others confirm) that you have the choice of waiting until April 1, 2019 to make your first RMD distribution, but this will effecively cause there to be two RMD for TY 2019 since your second RMD can be no later than 12/31/2019. This will increase your taxable income for 2019 by both your first and second RMD.Your first RMD is calculation is based on your IRA balances on 12/31/2017. If you choose to not distribute the first RMD by 12/31/2018 (and wait until April 2019) you have effectively included the undistributed first RMD into the second RMD calculation since year 2 RMD will be based on your year end balance on 12/31/2018.USAA has a pretty good primer on the topic linked here: https://www.usaa.com/inet/pages/ret_minimum_distributions?akredirect=true
Permalink Submitted by Alan - IRA critic on Fri, 2017-03-24 00:06
Steve is correct. Your first RMD year of 2018 includes a one time deferral option of the RBD to 4/1/2019. You can defer all or part of the 2018 RMD. In some cases due to the way SS is taxed and/or your other taxable income falls, running some tax scenarios in late 2018 will reveal how much of your RMD to take or defer in order to pay the lowest total tax bill for 2018 and 2019. This number crunching can be tedious, but might pay off if you are so inclined.