IRA Withdrawal for first and second year for someone 70 1/2
I turned 70 and one half on Jan. 28, 2008. My calculated IRA withdrawal for 2008 is approx. 8500. Is it possible for me to just withdraw, say $4000 of the $8500 in 2008 and withdraw the other $5500 before April 1, 2009??
Would this split withdrawal raise a red flag with the IRS knowing that I should have withdrawn $8500 in 2008 but only withdrew $4000 in this example.
Also where are IRA funds shown on your INcome tax form 1040? And do you have to list all your IRA accounts to show how you came up with your withdrawal amount?
Thanks so much for your assistance. Ed Walker, [email protected]
Permalink Submitted by Clyde Wolf on Wed, 2008-11-19 01:39
Edmwalker,
Congratulations on achieving your 70.5 years.
Yes, you can split your IRA distribution your first year. However you must take the entire first RMD by April 1 of 2009. While your numbers don’t quite add up, taking $4,000 in 2008 and the remaining 4,500 by April 1, 2009 to complete an RMD of $8,500 is an acceptable thing for your first RMD. Then you must take the full RMD for 2009 by December 31, 2009. For some folks doing something like this may be a good thing.
IRA Distributions are entered on lines 15a and to the taxable amount is entered on line 15b of the Form 1040.
There is no place to list your IRA amounts on your 1040. In the case of making nondeductable IRA contributions to your IRA, you would need to complete form 8606 at the time the contribution is made.
You also need to complete form 8606 when you take a distribution from an IRA with nondeductable contributions.