RMD
I turned 70 1/2 in 2017 and postponed my RMD until April 1, 2018. When calculating my 2018 RMD, do I reduce the 12/31/17 fair market value of my IRA by the April 1, 2018 withdrawal?
I turned 70 1/2 in 2017 and postponed my RMD until April 1, 2018. When calculating my 2018 RMD, do I reduce the 12/31/17 fair market value of my IRA by the April 1, 2018 withdrawal?
Permalink Submitted by Alan - IRA critic on Mon, 2018-10-22 20:32
No, you must use the actual 12/31/2017 IRA value. That means your 2018 RMD will be roughly 3.7% higher than it would have been had you taken the 2017 RMD in 2017. However, that does not mean that your total taxes over the 2 years will necessarily be higher since variables such as income differences, deductions, cap gains and SS taxation factor into this. And of course tax rates are lower in 2018 than they were in 2017.
Permalink Submitted by Steven Leib on Tue, 2018-10-23 12:01
Thanks so much for your reply.