RMD for a Transfered 401k to IRA post age 70.5

Submitted by Joseph Schwarz on Thu, 2017-09-28 15:02

Client turns 71 in 2017
Retired 2/2017
Rollover of 401k to IRA 4/17
No RMD taken out of the rollover.

When and How to calculate his 2017 RMD?

Thanks

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Permalink Submitted by Alan - IRA critic on Thu, 2017-09-28 18:15

The RMD for the 401k should not have been included in the rollover. That RMD would be calculated using client’s balance on 12/31/2016 and age 71. This is the amount that was not eligible for rollover and must be treated as an excess IRA contribution returned with allocated earnings from the IRA account. His IRA RMD is based only on the value on 12/31/2016.