Required minimum distribution
I have client with birthdate of 10-18-1940. He turned 70-1/2 on April 18 2011 and did not take a RMD in 2011. Does he have to take 1 or 2 distributions this year and if so by what date.
I have client with birthdate of 10-18-1940. He turned 70-1/2 on April 18 2011 and did not take a RMD in 2011. Does he have to take 1 or 2 distributions this year and if so by what date.
Permalink Submitted by mk foss on Wed, 2012-02-29 18:09
Your client needs to take the first RMD by April 1, 2012 based on the IRA balance on 12/31/10. The second RMD is due by 12/31/2012 and is based on the IRA balance at 12/31/2011. There is no adjustment to the 12/31/2011 balance based on the timing of the first RMD.
Permalink Submitted by danica bal on Fri, 2012-03-02 04:34
Thanks for the post! There are certain rules you need to follow and it was nice to know more about it.