IRA RMD
In december 2009 I turned 70 1/2. Do I need to take my RMD in 2009? If I wait til April 2010 will I have to take 2 distributions?
In december 2009 I turned 70 1/2. Do I need to take my RMD in 2009? If I wait til April 2010 will I have to take 2 distributions?
Permalink Submitted by mk foss on Thu, 2009-12-10 18:59
All 2009 distributions are waived. If you took a distribution in April 2010, it would be all or part of your 2010 distribution. The 2010 distribution would be based on the fair market value at 12/31/2009.
Permalink Submitted by Charles Hackett on Thu, 2009-12-10 23:35
HMS,
If I may expand a little bit…You will have to take your (first) required distribution by December 31, 2010 because of the waiver mentioned. What you must take will be based on the value of all of your IRA accounts on December 31, 2009. Since you will be 71 in 2010, your divisor will be 26.5 according to the IRS tables. For example, if on 12/31/09 you have $20,000 in one IRA, and $80,0000 in another, your distribution for 2010 would be $100,000 divided by 26.5 for a total RMD of $3,773.58. Also keep in mind that you can take your RMD from only ONE account, AS LONG AS the amount you take is sufficient to cover your entire required amount. Hope this helps.