RMD and year end balance
I will have to take my RMD next year (2025) because I will turn 73 in Dec 2025. If I did, then I would use my 2024 year end balance to calculate it. I would also be 73, so I would use 73 from the lifetime table as my age correct? So my question is this. If I delay my first RMD to my RBD (April 1-2026), would I use the 2025 year end balance and my age as 74 from the lifetime table? I totally understand that IF I wait for my first RMD, I will have to take 2 distributions in that year (2026).Thank you Alan
Permalink Submitted by Alan - IRA critic on Tue, 2024-10-08 18:28
Yes, you can defer all or part of your 2025 RMD to as late as 4/1/2026. Your 2025 RMD is still based on the 12/31/2024 balance no matter when you take it. Your 2026 RMD will be based on age 74 and the 12/31/2025 balance. The correct table to use is the Uniform Table unless you are married to a sole beneficiary spouse who is more than 10 years younger than you ie. born in 1963 or later.
Note that to the extent you defer your 2025 RMD, your year end balance on 12/31/2025 will be larger by the amount you deferred and that will make your 2026 RMD slightly larger than it would have been.
Permalink Submitted by Donna Messinger on Tue, 2024-10-08 19:53
I appreciate you responding to my question. Thank you.