Post 70 1/2 RMD Retirement – 1st RMD
I have a client who retired at the age of 73 in August of this year and has kept his money at his 403B provider. My understanding is that he has until 4/1/12 to take his first RMD and 12/31/12 for his second. He has already started taking income to live on which begs the question: Will all distributions taken form 8/1/11 to 4/1/12 count towards his first RMD and any amount past count towards his second RMD? Or, another way of asking, will all distributions (even if they started in 2011 and continue to April 2012) count towards his first RMD? This seems logical to me but I cant find a good resource to confirm. I wasnt sure if it was all or none for that first RMD as keepign it one year versus splitting among the two calendar years. Any help here would be greatly appreciated.
Permalink Submitted by Alan Spross on Mon, 2011-11-28 22:07
You are correct. All distributions taken in an RMD distribution year are credited toward the RMD. For his first year, all distributions taken from 1/1/2011 to 4/1/12 count toward the first RMD until it is satisfied. But distributions taken prior to 1/1/2012 do not count toward the second year RMD. Distributions between 1/1/2012 and 4/1/2012 count first toward his 2011 RMD if necessary, and after 2011 is satisfied will count toward 2012.
Also, note that if he has pre 1987 accruals in the 403b, the current RMD rules do not apply to those dollars. For those dollars his RMDs do not begin until the year he is 75.