Required Beginning Date (RBD)
I turn 73 later this year and was planning on taking RMD before that date or possible half before and half after. However, I think my RBD is April of next year and if true, here’s my question.. if I die before next April after having taken my RMD this year, is my RBD of next April still valid for purposes of heirs to NOT take distributions in years 1 thru 9 ?
In other words, would it be prudent for me to hold off taking the 1st RMD until next April, even tho that would likely mean two for 2025 ?
Permalink Submitted by Alan - IRA critic on Mon, 2024-04-08 15:31
If you pass prior to RBD your beneficiaries will not have to take annual beneficiary RMDs in years 1-9 of the 10 year rule. Whether you took distributions between now and the RBD is immaterial, at least with respect to the beneficiary RMDs.
Permalink Submitted by Ron Corcoran on Mon, 2024-04-08 16:39
Thanks, so if I don’t pass, the distribution(s) I take this year will count as my RMD, correct ?
Permalink Submitted by Alan - IRA critic on Mon, 2024-04-08 17:09
Yes, distributions taken any time this year will be applied to your 2024 RMD. But you can defer any portion of the 2024 RMD until as late as 4/1/2025 if you wish. If you choose to use a QCD for any donations, be sure to complete the QCDs before completing your RMD. But you must complete your RMD before converting any amounts to a Roth IRA.