RMD Question

If an individual chooses to delay his/her first RMD until after the year in which he/she turns 70 1/2 (i.e. double up on RMDs in Year 2 vs. taking an RMD in Year 1 and an RMD in Year 2), is it possible to do the following:

– Take one-half of the Year 1 RMD in Year 1.
– Take the remaining one-half of the Year 1 RMD plus the Year 2 RMD in Year 2.

Would this be kosher under the law? In other words, would the RMD for Years 1 and 2 be fully satisfied using this method?

Your thoughts would be appreciated.

Thanks,
Matt Camrud, CFP



Yes. it’s kosher.
Any distribution taken in the first RMD distribution year is credited against the RMD due by the RBD. Therefore, if half is taken in Year 1 (first distribution year), then only the other half remains due prior to the following 4/1. It must be taken prior to 4/1.

Then, the second distribution year RMD must be taken by 12/31 of that year, and if so all RMD requirements are met.

This strategy may be useful in allocating taxable income between the two years.



Thanks for your timely response. Makes good sense to me.



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