First RMD year
My brother’s birthday is Dec 31 and this year he will be age 72. He has gotten a letter from his IRA custodian saying that his first RMD will be next year in 2023. A call to them did not change this (not sure what words were exchanged, but he said the result of the call is they continue to point to 2023 has his first RMD year). The only thing I can think is his Required Beginning Date will be April 1, 2023, but that’s not his RMD year.
I looked but couldn’t find anything….but is there some rule that says if your birthday is the last day of the year your birth year for RMD purposes will be considered the next year?
Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2022-04-04 01:51
The letter is incorrect unless they are referring to his RBD. The proposed IRS Regs do not change the age from the actual attained age of the taxpayer. Therefore, if brother’s birth cert indicates he was born anytime on 12/31/1950, then 1950 is his first RMD distribution year and his RBD is 4/1/2023. The first IRA distribution this year is deemed to apply to his RMD and is therefore not eligible for rollover.
Permalink Submitted by BruceM on Mon, 2022-04-04 16:54
Thanks….as I thought.