2nd year RMD
We have a client who turned 70-1/2 in 2015 and elected to take his first RMD from his SEP-IRA by April 1, 2016.
Please confirm that his second year’s RMD (for 2016) will be based on 12-31-2015 account balance without adjustment for the first year’s RMD not taken.
Thank you,
Art Dicker
Permalink Submitted by Alan - IRA critic on Mon, 2016-01-11 16:22
You are correct. The balance adjustment for deferred first year RMDs ended in 2002 and since then the actual year end balance is used for the following year’s RMD. Note that balance adjustments for outstanding rollovers and recharacterizations still apply as before.