RMD
Confused again. My understanding of RMD is once you turn 70 1/2 your first RMD is April 1st of the following year. Then, every year going forward. Today, I read that you can wait to 04/01 of the following year your turn 70 1/2 but, you will have to take two RMD that year. One on 4/01 and 12/31.
Here’s an answer from this site.
Yes. An IRA, SEP or SIMPLE owner must begin taking distributions in the year they turn age 70 ½. It does not matter if you are still working or if you do not want to touch the money, you still must take a required distribution. Your IRA custodian is required to notify IRS that you have to take a distribution but they are not required to tell IRS how much you should withdraw. The custodian is required to tell you how much you should withdraw or they must offer to do the calculation for you. You will get that letter from your IRA custodian in January each year.
Permalink Submitted by Jose Morales on Tue, 2015-10-27 16:33
You can choose to delay your first RMD until April 1st of the year following the year you attain the age of 70 1/2. If you do so, you must still take the following year’s RMD by December 31st of that same year. Meaning you will have two RMDs taken in the same year. Every year after you must take your RMD by December 31st. You do not get to delay any further RMDs until the following April 1st.
Permalink Submitted by Keith Toussaint on Tue, 2015-10-27 21:16
Pub 590 says;
Distributions by the required beginning date. You must receive at least a minimum amount for each year starting with the year you reach age 7012 (your 7012 year). If you do not (or did not) receive that minimum amount in your 7012 year, then you must receive distributions for your 7012 year by April 1 of the next year.
My impression is the required begining date is 04/01 of the year you obtained 70 1/2. Ed Slott can you chime in ?
Permalink Submitted by Alan - IRA critic on Tue, 2015-10-27 23:31
No, the RBD is 4/1 of the year following the year you reach 70.5. This agrees with your Pub 590 quote above. Note that the first sentence mentions “for each year”. The RMD for the age 70.5 year can be taken as late as the RBD and if taken in that year the RMD is still “For” the prior year. Example: Age 70.5 in 2015, RMD for 2015 taken March 2016; then RMD for 2016 and each year thereafter must be taken in the same year. 2015 is referred to an “RMD distribution year” meaning that you must take an RMD for that year, but if that is your first RMD year you can defer the RMD until 4/1/2016. Hope this helps.