1st RMD
If there is a 1st required minimum distribution from an IRA of $40,000 can the IRA holder elect to take $20,000 in 2019 and the balance of $20,000 in 2020 prior to April 1st or is all $40,000 in 2019 or all based on the required calc in 2020? We understand there will be a separate 2020 RMD due by 12/31/20
Permalink Submitted by Alan - IRA critic on Wed, 2019-12-11 19:36
All or part of the age 70.5 RMD can be taken in the first RMD year. The only requirement is that the total RMD is distributed by 4/1 of the following year. Sometimes factors like SS taxation produce a total tax savings if some of the first RMD is deferred. Calculation of the 2020 RMD is based on the 12/31/2019 balance, therefore deferring all of the 2019 RMD to 2020 will result in a higher 12/31/2019 balance by about 3.7%. That makes the 2020 RMD about 3.7% higher.