New RMD Laws
i have a client who turned 70 1/2 on December 14, 2019. Does he have to comply with the original 70 1/2 rules or can he legally go with the new 72 rules?
i have a client who turned 70 1/2 on December 14, 2019. Does he have to comply with the original 70 1/2 rules or can he legally go with the new 72 rules?
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-03 17:49
Since client reached 70.5 prior to 2020, his RMDs are not affected by the Secure Act delay to age 72. He must complete whatever portion of his 2019 that was not distributed by 4/1/2020. Then he must complete the 2020 RMD by 12/31/2020, etc. He does not avoid any RMDs that he would have had to take. Things would have been different if he did not reach 70.5 until 2020. It does appear that he will benefit from the new proposed RMD tables in 2021, which will reduce his RMD around 5 or 6% in 2021.
Permalink Submitted by Orrin Kohon on Mon, 2020-01-06 16:49
I took 2019 RMD 12/31/19. Iknow I must take RMD’s going forward regardless of Secure Act. Can I use new RMD tables for my 2020 RMD?Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2020-01-06 17:30
No. The new proposed tables have not yet been made official. It is expected that they will be available for 2021 RMDs, but we probably will not know for awhile.