FIRST RMD
Please clarify first RMD rule – I was 70.5 on 3/23/19. I understand that I must take my first RMD by 4/1/20. Question – Does this have to be the full RMD amount for 2020? You blog 4/9/19 states “while waiting till the 4/1 deadline means while you pay taxes on 2 RMD’s in the same year”. This is confusing – if I take my first RMD by 4/1/20, why do I need to take another RMD in 2020? THANKS !
Permalink Submitted by David Mertz on Tue, 2019-04-09 12:10
Regardless of when you take them, because you reached age 70½ in 2019 you must take an RMD for 2019 and another RMD for 2020. The deadline for taking the RMD for 2019 is April 1, 2020. The deadline for taking the RMD for 2020 is December 31, 2020.
Permalink Submitted by Alan - IRA critic on Tue, 2019-04-09 16:15
OP – ignore the following because it will not affect your RMD dates. However, I just read a release from Wolters Kluwer that appears to confuse the first RMD distribution year with the RBD under the proposed bills in Congress that stand a good chance of passing. Checking the SECURE ACT proposed provisions, the first RMD year will be the year the IRA or qualified plan owner reaches 72 instead of 70.5, however the RBD will still be 4/1 of the year following the year of the first RMD distribution year. The change from a half birthday to a full birthday will result in roughly half of taxpayers adding 1 year to their first RMD distribution year and the other half adding 2 years. The option of deferring all or part of the first distribution year RMD to 4/1 remains the same. However, elimination of the half birthday will result in a larger RMD impact if someone reaches 72 on 12/31 compared to reaching it the following day.