Elizog
I am doing an indirect rollover of my IRA this year. I have not yet taken my RMD and plan to do so by the April 2024 deadline for a 73 year old. Is this allowed if the full RMD is satisfied by that date which would mean that the money would be withdrawn by October 15 of the following year?
Permalink Submitted by Alan - IRA critic on Fri, 2024-04-19 15:35
If you were born in 1951, 2024 is your first RMD distribution year, even though you could delay that RMD to as late as 4/1/2025. Any distribution you take this year or next year must be applied to your 2024 RMD until that RMD is complete and therefore could not be rolled over except to the extent the distribution exceeds your RMD. The 10/15 date is irrelevant. If you were not born in 1951, please advise.
Also, you can move IRA funds without limit if you use direct transfers instead of distributions. Indirect rollovers should generally be avoided, since they are limited to only one such rollover within a 12 month rolling period. Direct transfers are not distributions, do not affect RMDs, are unlimited in number, and are non reportable (no 1099R) by the custodian or by you on your tax return. Direct transfers should usually be initiated with your receiving IRA custodian.
Permalink Submitted by Eli Zogby on Sat, 2024-04-20 16:22
Thank you Alan, Regards, Eli