RMD rules when Retiring in year turning 70 1/2
Client will retire in the year he turns 70 1/2. Will he be subject to RMD on the full value of his IRA as of the previous 12/31. Thank you.
Client will retire in the year he turns 70 1/2. Will he be subject to RMD on the full value of his IRA as of the previous 12/31. Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2018-08-29 22:48
Working status does not affect IRA RMDs. He will have to take an RMD FOR the year he reaches 70 .5, but is allowed to postpone any portion of that first RMD to as late as 4/1 of the following year. Therefore, depending how much his wage income is for the time he works in the 70.5 year, he could manage the amount of the RMD he takes that year to try to equalize his taxable income in both the 70.5 and the following year.