RMD 1st year
Bill turns 72 in June 2022 but wants to take $10k from his IRA in February 2022. Will that $10k count towards his 1st RMD or does he have to wait until after his birthday in June? Thanks
Bill turns 72 in June 2022 but wants to take $10k from his IRA in February 2022. Will that $10k count towards his 1st RMD or does he have to wait until after his birthday in June? Thanks
Permalink Submitted by Alan - IRA critic on Tue, 2022-01-11 19:45
The 10,000 will be applied against his RMD for 2022. The first distribution taken in any RMD year is treated as applying to the RMD for that year and is not eligible for rollover. As such the Feb distribution cannot be rolled back within 60 days or converted to a Roth IRA. In addition, if Bill plans any QCDs in 2022, he should be sure to complete any QCDs before completing his RMD so that the QCD can offset taxable RMD income. To be clear, the actual date of his birthday is meaningless other than his age on his birthday determines whether there is an RMD or not and what divisor will apply. In Bill’s case, his divisor will be 27.4 under the new RMD tables unless he is married and sole beneficiary spouse is more than 10 years younger.