Clarity on delaying 1st RMD
On today’s online webcast, Ed made mention that anyone attaining age 72 in the 1st half of the year could not delay their 1st RMD to April 1st of the following year, but those attaining age 72 in the second half of the year can?
1. Did I mis-hear or misinterpret what he said?
2. If I heard correctly and that’s true, is that applicable to every year going forward, or just this year?
Thank You!!
Permalink Submitted by Alan - IRA critic on Thu, 2021-09-16 02:13
Yes, I think there was some confusion. In the year you reach 72, regardless of when, you can defer all or part of your first year RMD till 4/1 of the following year. If you do, you will need to also take your second year RMD in that same year meaning you will have two RMDs in taxable income that year. This rule only applies for IRA accounts for the year you reach 72. For the age 73 year and all years thereafter the RMD is due by 12/31.
What you may have heard that is similar to your post is that if you were born prior to 7/1/1949, your IRA RMDs start at 70.5 because you attain age 70.5 prior to 2020 and cannot apply the Secure Act to use 72 as your first RMD year. If born after 7/1/1949 your RMDs start at 72.
Permalink Submitted by Jason McBride on Thu, 2021-09-16 02:27
Thanks very much.