T-IRA RMD

Submitted by ShipsnGiggles on Mon, 2019-10-14 14:58

Seemingly straightforward questions that I’ve never been asked. I would think this okay – looking form confirmation. t
Traditional IRA owner reaches 70.5 in 2019
wants to split his first RMD between 2019 and 2020. Can he do that?

Client is aware he will have to take a full RMD for 2020 next year along with the (other half) of his 2019 RMD by April 1 2020

Thank you



Submitted by Alan - IRA critic on Mon, 2019-10-14 15:35

  • Yes, client can split the 2019 age 70.5 RMD in any proportion he wishes between 2019 and 2020 by 4/1. Sometimes, the way SS is included in AGI, there is a certain proportion that produces the lowest total tax bill for the 2 year period. But this takes some number crunching with tax software, and the time to do that would usually be late in 2019 when 2019 taxable income is known and perhaps as much of the 2020 that is possible to know even before the year starts.
  • As for IRS Regs, all that is required for the 2019 RMD is that it be completed by the required beginning date of 4/1/2020. 
  • Note that the portion deferred to 2020 will result in a higher 12/31/2019 balance, making the 2020 RMD larger. But that disadvantage can be overcome depending on the income breakdown over the two years.

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