Multiple RMDs in first year
Sir/Madam,
Our client turned 70.5 in Dec 2011. We would like to distribute her RMDs for 2011 & 2012 at the same time for tax planning reasons. In calculating this figure, do we need to subtract the 2011 RMD amount from the 12-31-2011 account balance before we calculate her 2012 RMD?
Thank you,
Chris
Permalink Submitted by Alan Spross on Tue, 2012-01-31 00:56
No. That former adjustment was eliminated in the 2002 RMD Regs in the interest of simplification.
Of course, the full 2011 RMD must be distributed by 4/1/2012, and the 2012 RMD will be almost 4% higher than if that balance adjustment could have been made.