RMD distribution at age 73
I will turn 73 in July of this year (2024). I have already begun taking RMDs from my tradition IRA, including a few QCDs, in the first quarter of this year. Total withdrawn is about 1/3 of the total RMD due. However, later in the year we’re expecting a rather large one-time payment of employment income, so the year’s AGI is likely to be much higher than in 2025. If I wanted to, could I take some part of this first year’s RMD in 2025 (before April 1) to even out the AGI between this year and next? Or because I’ve already taken some distributions this year, does that first-year 3 month extension not apply? Thanks very much for feedback.
Permalink Submitted by PaulC on Tue, 2024-03-26 18:15
You still retain eligibility to take any remaining portion of your 2024 IRA RMD by April 1, 2025 even though you’ve already taken distributions that count toward that RMD this calendar year. Your RMD for 2025 will be calculated on your aggregated 12/31/2024 IRA balance(s) whether or not you’ve completed all of the 2024 RMD. In other words, you don’t get to subtract any remaining portion of the 2024 RMD from the 12/31/2024 balance before applying the divisor to determine the 2025 RMD.
Permalink Submitted by David Toberisky on Wed, 2024-03-27 11:46
Got it. Thanks very much!