Required Beginning Date for RMD
If a client has taken part of their RMD in the year they turn 73 but wants to delay the remainder to April 1 of the following year is that ok?
If a client has taken part of their RMD in the year they turn 73 but wants to delay the remainder to April 1 of the following year is that ok?
Permalink Submitted by Alan - IRA critic on Thu, 2024-09-19 18:40
Yes, that’s OK. It’s not all or nothing deferred.
While taking the first year RMD in full by year end is usually more beneficial, there are a few cases where deferral could actually lower the total tax bill for the 2 years. But it takes tax modeling, usually very late in the first RMD year to determine the optimal portion of the first RMD to defer. Tax on SS income is often the key to the tax modeling. Another reason to defer might be that the client will be retiring late in the first year and that income will be gone in the second year.