IRA RMD

Submitted by Keith Toussaint on Thu, 2014-03-13 16:27

Owner must take RMDs by April 15 of the year they turn 70 1/2. Will they have to take a second RMD in the same year because they turned 71 at the end of the year?

Born 8/8/1944
Age 70 2014
Age 70 1/2 (March 8, 2015)
1ST RMD by 4/15/2015

Will he have to take a second RMD in 2015?

also, his wife is 10 years younger & sole IRA bene so, he will have to use the Joint life table.



Submitted by Alan - IRA critic on Thu, 2014-03-13 17:06

  • RMD for year 2015 can be taken as late as 4/1/2016 (not 4/15). But that would result in two RMDs being taxable in 2016 because the 2016 RMD must also be taken no later than 12/31/2016. Owner should determine whether total taxes for both years will be lower if the first RMD is deferred to 2016 or not. Also, any portion can be taken in 2015 and the rest in 2016 by 4/1.
  • Table II only applies if spouse is MORE THAN 10 years younger than IRA owner. For 10 years exactly the Uniform table applies.

   

Submitted by Keith Toussaint on Thu, 2014-03-13 17:17

By 4/1/2015 (owner is 70 1/2) he must take his RMD. He would have to take a second RMD by the EOY 12/31/2015.  He’s 70 this year in 2014. I thought he could delay this years RMD to 4/1/2015 and then have to take 2015 by the EOY.his wife is more than 10 years younger.

Submitted by Keith Toussaint on Thu, 2014-03-13 18:10

ktoussaint – Thu, 2014-03-13 13:17.Sorry to ask this question again, but I received two diffirent scenatios from MF vendors and 1 CPA. I beleive you are right but the dates in your reply mentioning 2016 may not be accurate.The IRA owner will be 70 this year (2014) He will be required to take his RMD by 4/1/2015 (owner will be 70 1/2) He would have to take a second RMD by the EOY 12/31/2015. Is that correct? You mentioned his 2015 RMD could be taken by  4/1/2016. Sorry to ask this question again, but I received two diffirent scenatios from MF vendors and 1 CPA.My understanding is that at age 70 you can delay the 1st RMD until 4/1 of the year you are 70 1/2 but, you would have to take a second RMD in the same year if you elected to wait until 70 1/2.His wife is more than 10 years younger.

Submitted by Alan - IRA critic on Thu, 2014-03-13 18:09

2014 is NOT an RMD year because he does not reach 70.5 until 2015. Reaching 70 not trigger RMDs, 70.5 does.  2015 is the first RMD year, and the 2015 RMD can be delayed until 4/1/2016. Table II will apply if wife is more than 10 years younger.

Submitted by Keith Toussaint on Thu, 2014-03-13 18:12

Got it. thank you.

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