1st IRA RMD
Good Afternoon,
A question was posed today that I’ve never been asked. I coming the board looking for guidance
Can a traditional IRA account owner’s 1st RMD in the year they reach 70.5 be split among tax years?
FACTS:
Account owner will be 70.5 in 2014.
She wants to take a portion of her 2014 RMD in 2014 and remainder in 2015. Is this permitted? Any potential pittfalls?
She is aware she is also reponsible for taking her 2015 RMD in 2015.
Any help is appreciated.
Thank you !
Permalink Submitted by Alan - IRA critic on Thu, 2013-11-21 20:53
Yes, the first year RMD can be split in any combination between the first year and up to 4/1 of the second year. The first RMD is not an “all or nothing” choice. Sometimes reducing the first year RMD will result in a lower overall tax for the two years. This can happen due to other taxable income differences and also the way SS income in phased into AGI. And instead of having 85% of your SS included in AGI both years, reducing the first RMD could result in less than 85% of SS being taxed in that first year. You have to experiment with a tax program to get the numbers for your own situation.