SEP IRA OPENED OVER AGE 70.5; WHEN DOES 1st RMD OCCUR?
If you both create a SEP IRA and contribute to one when over age 70.5, do you need to take an RMD by 12/31 of that year? For example, if you create and fund a SEP in April and are over 70.5, do you need to take an RMD by 12/31 of that year? If so, what balance do you use in the numerator for the RMD calculation as there is no prior year-end value? Thanks!
Permalink Submitted by Alan - IRA critic on Thu, 2019-04-11 15:19
There is no RMD for an account without a prior year end balance. In your example, the first RMD from the SEP IRA would be for the year following the year of the first contribution.
Permalink Submitted by Kevin Galvin on Thu, 2019-04-11 16:45
Thank you Alan!