RMD question…….
employed 80 year old(God Bless her) just rolled over 401k to IRA Sept 2016………MRD is due by April 15th 2017 for 2016 tax year?
employed 80 year old(God Bless her) just rolled over 401k to IRA Sept 2016………MRD is due by April 15th 2017 for 2016 tax year?
Permalink Submitted by Alan - IRA critic on Tue, 2016-09-27 19:42
First IRA RMD is due 12/31/2017 using 12/31/2016 account balance. There is no IRA RMD for 2016, and no RMD from the 401k plan unless she is 5% owner, retires before year end, or the plan requires RMDs at 70.5 for all employees (rare). The 4/1 required beginning date for IRA RMDs only applies to the RMD for the year the IRA owner reaches 70.5. If she retired before year end, some of the IRA rollover already done would be considered a plan RMD, and this IRA rollover would eliminate the option for a 4/1/2017 beginning date for 401k plan 2016 RMD.
Permalink Submitted by David Castelli on Tue, 2016-09-27 20:14
appreciate the quick response