Traditional IRA when RMD start
Married Person age 72 in October 2023; husband age 76 in 2023 is beneficiary of all IRA’s.
Person Has traditional non-deductible IRA about $40,000 and Roth IRA about
$30,000 balances as of 12/31/2022. Roth IRA’s has been in place for more than 5 years
Read different dates when RMD are required from traditional IRA.
1. Is RMD required in 2023 because person will be 72 in 2023 If so does the RMD need
to be taken by 12/31/23 or can it be postponed to April 1, 2024
2. OR law postponed 2023 RMD until age 73 which must be taken in year 2024
3. If RMD postponed to 2024, which factor is used then a) the age 72 factor as of 2023
or b) the 2024 RMD which is the factor for age 73 as of 2024, c) the age 72 factor as of 2024. Or something else?
Permalink Submitted by Alan - IRA critic on Mon, 2023-08-21 19:27
First RMD distribution year is 2024 at age 73, however the 2024 RMD can be deferred to 4/1/2025. The 2024 RMD is based on age 73 and the IRA balance on 12/31/2023. If non deductible contributions were made in the past, Form 8606 would document the IRA basis and will have to be used to calculate the taxable amount of all TIRA distributions.
Permalink Submitted by alberto vega on Wed, 2023-08-23 00:14
To summarize TIRA RMD does not have to be taken until age 73 which is year 2024Then if TRIA RMD is taken in yr 2024 which is the factor to be used ? age 73 factor in 2024 which is 26.5 Table III
Permalink Submitted by Alan - IRA critic on Wed, 2023-08-23 00:47
Yes, the divisor for the 2024 RMD (age 73) is 26.5, whether the 2024 RMD is taken in 2024 or deferred to early 2025.