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This Week's Q&A Mailbag: Two RMD Questions

By Sarah Brenner, JD
IRA Analyst
Follow Us on Twitter: @theslottreport
 

Question:

Hi,

I recently purchased your newsletter and I had an IRA question.  If a client dies before taking his required RMD for the year, does the estate need to take the RMD and pay the taxes before the account is transferred to the non-spouse beneficiary?  If not does the beneficiary have to take that RMD and pay the tax?  Thanks for your help

Answer:

This is a question that comes up a lot! If an IRA owner dies before taking their required minimum distribution (RMD) for the year of death, the beneficiary must take the RMD and will be taxed on it. The only time the estate would be required to take the RMD would be if the estate was the IRA beneficiary.

Question:

Greetings,

Does one have to subscribe to any product before I can submit a question.

My question is:

I turn 70 and 1/2 in August 2018. Does minimum withdrawal have to start after that date or any withdrawals in 2018 would contribute towards minimum withdrawals?

Thanks.

Yoonas

Answer:

You do not need to wait until you are actually age 70 ½ before you can take your RMD for 2018. Any withdrawals taken in the year you reach 70 ½ will count towards your RMD. Therefore, you can start taking your RMD for 2018 at any time now. You do not have to wait until August.

 
 
 
 

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