Why 2 RMDs in same year

Submitted by Keith James on Fri, 2018-01-26 05:31

Here are the facts:

Your Birthday: August 12, 1947
You’re 70½: February 12, 2018

1st RMD due: April 1, 2019

I understand that I have to take a second RMD again by December 31, 2019. Is that is correct??

If that is correct, why 2 RMDs in the same year?

If I have $100,000 in my IRA by 12/31/2018 then I use the factor to determine the amount for the 1st RMD by April 1, 2019. OK that is simple.

But what value do I use for the second one due by 12/31/2019?

Thank all of you who can explain this to me.

Keith



Submitted by David Mertz on Fri, 2018-01-26 12:53

  • The RMD due by April 1, 2019 is your RMD for 2018, based on your age in 2018 and your *2017* year-end balance (not your 2018 year-end balance).  You can take this RMD anytime between January 1, 2018 and April 1, 2019, but if you want to make the distribution as a Qualified Charitable Distribution, you must wait until you are actually age 70½, February 12, 2018, to make the distribution.
  • The RMD due by December 31, 2019 is your RMD for 2019, based on your age in 2019 and your 2018 year-end balance.

Submitted by Keith James on Mon, 2018-01-29 19:21

Thank you DMx, Keith

Submitted by Alan - IRA critic on Fri, 2018-01-26 17:23

In addition, note that if you delay your 2018 RMD to early 2019, you will be taxed on 2 RMDs in 2019, both your delayed 2018 RMD and your 2019 RMD. And your 2019 RMD will be roughly 3.8% higher because your 2018 RMD had not been distributed in 2018 and therefore your 12/31/2018 balance will be higher than if you taken out the 2018 RMD in 2018.

Submitted by Keith James on Mon, 2018-01-29 19:22

Thank you, Alan Keith

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