RMD Calculation When Taking Two in Same Tax Year

Submitted by Jonathan Sard on Tue, 2018-10-02 15:01

A person born on 11/1/46 had a 4M IRA balance as of 12/31/16. Because she turned 71 in 2017, her RMD was calculated at $150,943 (4M / 26.5). She only took out 140k in 2017 and then took out the remaining $10,943 in January 2018 since she had until April 1. Two questions:
1. How is her 2018 RMD calculated? Does she use the 12/31/17 account balance or does she use the 12/31/17 account balance and then back out the $10,943 since that remaining RMD amount was actually for 2017?
2. Is it ok that she took some of her 2017 RMD in tax year 2017 AND then some in January 2018 given her DOB?

Thank you!



Submitted by David Mertz on Tue, 2018-10-02 16:12

  1.  For the 2018 RMD calculation the actual 12/31/2017 balance is to be used without adjustment.
  2.  Yes that’s fine.  There is no problem with splitting the first-year RMD between the first and second years as was done.  The $140k is income reportable on the 2017 tax return and the $10,943 is income reportable on the 2018 tax return along with the 2018 RMD that must be completed by 2018 year-end.

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