RMD for IRA Established in Year Turned 70 1/2

Submitted by Robert Arensberg on Tue, 2018-12-04 04:59

I have a client who turned 70 1/2 in 2018, and also retired in 2018. He then started working as a consultant and established a solo 401k based on his 1099 income from that. Does he have an RMD this year and if so how would it be calculated, since there is no 12/31/17 value from which to base the calculation?



Submitted by Alan - IRA critic on Tue, 2018-12-04 15:45

  • There is no 2018 RMD from the solo K plan as there was no 12/31/2017 balance in this plan. As a >5% owner, client will have to take a 2019 RMD by the end of 2019.
  • That said, if the client has a plan balance with the employer he retired from in 2018, he will have an RMD from that plan due no later than 4/1/2019, or if he did an IRA rollover from that plan in 2018, part of that rollover is deemed to be the 2018 RMD for that plan if the RMD was not previously distributed.

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