RMD
clients birthdate is 9-30-1937. She was 70 1/2 on the 30th of march 2008.
question: is her RMD based on 70 yrs old @ 27.4 or is it based on 71 yrs old as she will be in 2008 @ 26.5?
TIAA CREF is stating the 27.4.
Thank you,
Douglas
clients birthdate is 9-30-1937. She was 70 1/2 on the 30th of march 2008.
question: is her RMD based on 70 yrs old @ 27.4 or is it based on 71 yrs old as she will be in 2008 @ 26.5?
TIAA CREF is stating the 27.4.
Thank you,
Douglas
Permalink Submitted by Alan Spross on Mon, 2008-09-08 21:07
Douglas,
They are wrong, and setting her up for an insufficient RMD. Since she will reach age 71 in 2008, which is her first distribution year, her divisor is 26.5.
Refer them to Pub 590, p 38. “What Age Do You Use”, Table III (Uniform Lifetime).
If she opted to wait until her RBD in 2009, she would still use 26.5 for her delayed 2008 RMD (12/31/07 balance), and 25.6 for her 2009 RMD (12/31/08 balance).
Permalink Submitted by [email protected] on Tue, 2008-09-09 16:06
am i right in stating:
if you are 70 1/2 in 2008, you have to take out the rmd in 2009 but if you are 70 1/2 in 2009 you can wait until 2010 to take your rmd?
thank you,
Doug
Permalink Submitted by Denise Appleby on Tue, 2008-09-09 17:53
Maybe they have a wrong DOB recorded, or maybe someone ran a manual check and made a mistake. The system TIAA uses for their IRAs ( if it’s brokerage) is accurate.
[quote=”[email protected]“]am i right in stating:
if you are 70 1/2 in 2008, you have to take out the rmd in 2009 but if you are 70 1/2 in 2009 you can wait until 2010 to take your rmd?
thank you,
Doug[/quote]
yes you are right