PARTIAL RMD TAKEN IN YEAR 1
Taxpayer was 70 1/2 in 2012
IRA value 12/31/11 was #35,000. Taxpayer took distribution of $100 in 2012 and forgot to take balance of distribution prior to April 1, 2013. IRA value 12/31/12 is $37,000.
How is total distribution computed?
Thank you
Perry
Permalink Submitted by Alan - IRA critic on Tue, 2013-12-17 03:42
If 2012 was the first RMD year (year they reached 70.5), the total RMD must be completed by 4/1/2013. The amount is the same regardless of when that RMD is completed. If it was not completed the shortfall should be distributed ASAP and form 5329 filed to request a penalty waiver. The actual 12/31/2012 account balance (37,000) is used to determine the 2013 RMD. Therefore, the shortfall from 2012 plus the 2013 RMD should both be distributed before 12/31/2013 (in other words ASAP given the date). The RMDs will be taxable in the year of the actual distributions, so the 2013 taxable income will be higher than in a usual RMD year. Does this answer your question?