What’s the correct RBD
Taxpayer turns 73, so his RBD is April 1st of the following year. He decides not to wait, and takes his first RMD during the year he turned 73. Then he dies before April 1st the following year. He technically died before his April 1st RBD, but took first distribution. Does the distribution before RBD complicate whether beneficiaries need RMDs years 1-10? Thanks! Can’t find this anywhere. Will have to ask God if you don’t know!!
Permalink Submitted by Alan - IRA critic on Mon, 2024-06-24 16:32
Taxpayer has still passed prior to RBD even though the first RMD was completed. Any beneficiaries that are subject to the 10 year rule will not have to take annual RMDs in years 1-9.
Similarly, if the estate was the beneficiary the 5 year rule would apply.