First Year’s RMD Question
Got a client who’s 70 1/2 birthday was after July 1st 08′ – He elected at that time to defer the first years RMD until the deadline granted (normally) of April 1st of the following calendar year…
My question is – Now that the IRS has suspended the RMD for 2009 – Is my client in this example above required to take that first years distribution, being that it is actually being distributed in 09′ ?
Gregg Guiol
Permalink Submitted by Alan Spross on Mon, 2009-02-02 22:03
Yes, he still must take it because it is actually a 2008 year RMD, not a 2009 RMD, despite the fact that it was deferred to the required beginning date.
It must come out by 4/1/09. But at least he will not be taxed on two distributions in 2009, as he would have prior to the relief bill.