RMD in year I turn 70 1/2 and year I turn 71
My birthdate was in February 1950. I plan to take part of my 2020 RMD in March 2020, the remainder of my 2020 RMD in February 2021, part of my 2021 RMD in February 2021 and the remainder of my 2021 RMD prior to December 31, 2021.
Is there any issue with labeling part of my February 2021 distribution as applying to 2020 (only the minimum amount required) and the remainder as applying to my 2021 RMD? I’m a little concerned about the comment on page 6 of Publication 590-B that “If, in any year, you receive more than the required minimum distribution for that year, you will not receive credit for the additional amount when determining the minimum distributions for future years.”
Also, the examples on page 7 of Publication 590-B are a little confusing to me. Do I use age 70 to figure my 2020 RMD and age 71 to figure my 2021 RMD, or should I use age 71 (or age 70) for both?
Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2016-04-11 17:45
You do not have to designate the distributions in any way. All the IRS is looking for is that your 2020 RMD is completely distributed by 4/1/2021 and your 2021 RMD by 12/31/2021. The Pub 590 B reference only means that if you take out more than your RMD for any year, you cannot apply the excess to a later year. You would not be doing that. You will use the age 70 divisor for your 2020 RMD and 71 for the 2021 RMD.