SEP IRA OPENED OVER AGE 70.5; WHEN DOES 1st RMD OCCUR?

If you both create a SEP IRA and contribute to one when over age 70.5, do you need to take an RMD by 12/31 of that year? For example, if you create and fund a SEP in April and are over 70.5, do you need to take an RMD by 12/31 of that year? If so, what balance do you use in the numerator for the RMD calculation as there is no prior year-end value? Thanks!



There is no RMD for an account without a prior year end balance. In your example, the first RMD from the SEP IRA would be for the year following the year of the first contribution.



Thank you Alan!



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