RMD
Client birthday 8/14/49, making him 71. He turned 70.5 in 2020, meaning he should have started his RMDs in 2020. Of course RMDs were eliminated for 2020, so we didn’t take one. He met with his CPA, and his CPA is insisting he still has to take an RMD by April 1. I don’t think he needs to.
I did just set up RMD distribution for 2021 however, since he will have to take one for this year.
Is the CPA correct? Do I have to do an RMD for him for 2020 by April 1.
Permalink Submitted by Alan - IRA critic on Thu, 2021-02-25 23:54
If the DOB is correct, client reached 70.5 in 2020, and therefore his RMD age is 72 per the Secure Act, not 70.5. His first RMD distribution year is 2021, with RBD being 4/1/2022. The CPA is incorrect, and the 2020 RMD waiver is not even a factor since his first RMD would not have been in 2020 even if 2020 RMDs had not been waived.