SEP RMDs/TIRA
I have a client with 2 separate SEPs and 1 TIRA that she established and funded in March 2021. The TIRA was coded as a 2020 contribution and funded with 7K. First, must she (77 years old) take an RMD this year on the newly established TIRA? If so, there wasn’t a 12/31 balance.
Second, can I aggregate all RMDs and take from one account? Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2021-09-27 18:37
RMDs can be aggregated between owned SEP, SIMPLE, and TIRA accounts. There will be no 2021 RMD for the TIRA since there was no year end 2020 balance. Note that any deductible TIRA contribution made for or after the year taxpayer reaches 70.5 will offset any QCDs made up to the amount of deductions taken in those same years. This offset does not apply to SEP contributions.
Permalink Submitted by Robert Ervolina on Mon, 2021-09-27 18:45
thank you