IRA RMD when still making IRA contributions
Client is 73. She opened an IRA and made her first contribution for $7,000 in March 2022 as a 2021 deductible contribution. Does she need to take an RMD in 2022? There was no 12-31-2021 balance to calculate it on.
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2022-12-01 16:42
No, she does not have an RMD requirement for 2022. However, she should be aware that making a deductible contribution at 70.5 or later will impair the tax benefit of any future QCDs she will make. In this case, the first 7000 of QCDs made could not be claimed as QCDs. They would be taxable distributions and eligible to be itemized, if she can itemize. If not planning future QCDs, the deduction is not a problem.
Permalink Submitted by Ed Snyder on Thu, 2022-12-01 16:50
Thanks for the detailed and quick reply!