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Financial Planning / Tax Strategies
|Subject: Re: Another TMF Question||Date: 1/4/2013 9:07 PM|
|Author: TMFPMarti||Number: 117303 of 125203|
So, we got to talking about RMDs and someone that I think should know insisted that the first RMD had to be taken AFTER the person was 70 1/2 and before April 1 of the next year. I thought is was in the year they reached age 70 1/2 and before etc. and it didn't matter if it was before or after 70 1/2.
The good news is that, as stated, you're both wrong. You must take your first RMD for the year in which you turn 70 1/2. To make it easier, let's say the person in question turns 70 1/2 in 2013.
(S)he must take an RMD for 2013 between 1/1/2013 and 4/1/2014. It is based on 12/31/2012 balance and 12/31/2013 age.
(S)he must take an RMD for 2014 between 1/1/2014 and 12/31/2014. It is based on 12/31/2013 balance and 12/31/2014 age.
The reference in Pub 590.
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