This Week's Q&A Mailbag: Two RMD Questions
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
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.
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?
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.
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to firstname.lastname@example.org for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at email@example.com or (516) 536-8282 with any questions.