Taking 2 RMDs in the same year rules

Submitted by B Lee on Tue, 2023-05-30 18:14

I will turn 73 in 2024 and plan to delay my first RMD. I understand I must take 2 RMDs in 2025 before any Roth conversion.

Is following sequence correct?
-Take 1st RMD on/before 04/01/25 using 12/31/23 balance & age 73 factor
-Take 2nd RMD on/before 12/30/25 using 12/31/23 balance & age 73 factor or current balance with age 74 factor?
-Convert some remaining balance to Roth IRA on/before 12/31/25
-Take 3rd RMD on/before 12/30/26 using 12/30/25 balance & age 75 fator
-Convert some balance to Roth IRA on/before 12/31/26
-Repeat last 2 steps annually with proper balance & age factor until IRA reach zero?

How do they know correct step/timing/balance/factor are used over individual life time?

When doing RMD, is it better ask brokerage firm to calculate/distribute instead self calculate?

When dealing RMD with multiple accounts in different firms, is it better to total RMD from one account vs from each individual account?



Submitted by Alan - IRA critic on Tue, 2023-05-30 18:46

  • First RMD procedure is correct. 2025 RMD is based on age 74 and 12/31/2024 balance. Both RMDs must be complete before converting any amount. The IRS is not aware of transaction dates without an audit, and custodians are not aware of IRA activity and balances other than their own and therefore do not know if you may have completed your RMDs from a different IRA. As such they may or may not warn you with respect to timing issues. Any QCDs introduce yet anothe timing issue to the process.
  • Most major brokerage IRA custodians are very accurate in determining your RMD from their account, but it’s wise to check their figures since that is fairly simple. Be sure to use the new 2022 RMD table.
  • If you have multiple accounts, the IRS RMD aggregation rules give you the flexibility to take your RMD in any combination from these accounts. The custodians can provide you with their RMD amount, but if you see a benefit from aggregating you will just have to make sure the total RMD is satisfied. There will be a separate 1099R for each account that issues you a distribution. The better method is the one that you will not mess up, but still accomplishes your needs. 
  • Remember, if you desire a change of custodians move the account by non reportable (no distribution, therefore no 1099R or RMD) transfer between custodians. This avoids the one rollover limit and RMD timing errors. 

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