RMD distributions
You turn 70 ½ in 2013. You take your first RMD prior to April 1, 2014 based on the December 2012 balance. Now you are getting ready to take your next RMD for 2013.
Is that RMD amount based on the 2013 December balance minus the recently taken first RMD or is exactly what your December 31, 2013 statement said your account value was (including that first RMD)?
Permalink Submitted by Jose Morales on Thu, 2014-04-03 16:19
Page 35 of Publication 590 covers this: http://www.irs.gov/pub/irs-pdf/p590.pdf You do not adjust for any distributions taken after December 31st for the prior year.
Permalink Submitted by Alan - IRA critic on Thu, 2014-04-03 16:32
The year end value used to be adjusted, but the 2002 RMD Regs eliminated the adjustment for the benefits of simplification. The elimination of the adjustment results in the second year RMD being roughly 3.8% higher than it would have been had the first RMD been taken in the first RMD distribution year.