RMD 1yr after turning 70 1/2 within same year
have client who is 70 this year 6-22-44. She will be 70-1/2 this year in December.
Am I correct in stating that she could take her RMD this year using calculation of 70 @ 27.4?
or
she could not take her RMD this year, but will have to take two next year…the first RMD by April 1st of next year using age 70 again, but then another distribution by December using age 71?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2014-11-21 20:57
Yes, that is correct.
Permalink Submitted by Douglas Bauerband on Fri, 2014-11-21 22:06
would it be okay for her to take some this year but not all of it and then take the rest before apri 1st that was due this year?
Permalink Submitted by Alan - IRA critic on Fri, 2014-11-21 22:49
Yes. The first year RMD can be taken in any combination between the first year and 4/1 of the second year. Sometimes a partial first year RMD results in the lowest total taxes for the two years due to taxation of SS benefits.