What is the deadline for taking your first RMD after your 70 and 1/2 birthdate?

jegreen56

My wife is a stickler on not taking out her IRA money until she absolutely must. Smart wife. I have read from Intuit Questions that it does not have to be done until April 1st following the year she turns 70 and 1/2. Confirmation is mandatory according to her. What say you?

J_Mike

From this article;
https://www.fool.com/retirement/2018/02/10/over-70-heres-your-rmd-guide-for-2018.aspx

Generally speaking, you have to take each year's RMD by the end of the calendar year. The only exception is for your first RMD, which must be taken by April 1 following the calendar year during which you turn 70 1/2. For example, if you turn 70 1/2 during 2018, you technically have until April 1, 2019, to take your first RMD.

Also note;

If you turn 70 1/2 in 2018, be careful about waiting

As a word of caution, keep in mind that withdrawals from retirement accounts that have RMD requirements are considered taxable income.

Here's where this can get you into trouble. Let's say that you'll turn 70 1/2 in 2018. This means that you have until April 1, 2019 to take your first RMD. However, your second RMD will also be due by the end of 2019. By waiting until 2019 to take your first RMD, you'll have two big withdrawals in the same calendar year, which could easily bump you into a higher tax bracket.

The point: If you turn 70 1/2 during 2018, it can be a smart tax move to take your first RMD by the end of the year, even though you aren't required to do so.

NotACPA

No one here is qualified to give that sort of tax advice.  I'd suggest that you consult www.IRS.gov

J_Mike

From this article;
https://www.fool.com/retirement/2018/02/10/over-70-heres-your-rmd-guide-for-2018.aspx

Generally speaking, you have to take each year's RMD by the end of the calendar year. The only exception is for your first RMD, which must be taken by April 1 following the calendar year during which you turn 70 1/2. For example, if you turn 70 1/2 during 2018, you technically have until April 1, 2019, to take your first RMD.

Also note;

If you turn 70 1/2 in 2018, be careful about waiting

As a word of caution, keep in mind that withdrawals from retirement accounts that have RMD requirements are considered taxable income.

Here's where this can get you into trouble. Let's say that you'll turn 70 1/2 in 2018. This means that you have until April 1, 2019 to take your first RMD. However, your second RMD will also be due by the end of 2019. By waiting until 2019 to take your first RMD, you'll have two big withdrawals in the same calendar year, which could easily bump you into a higher tax bracket.

The point: If you turn 70 1/2 during 2018, it can be a smart tax move to take your first RMD by the end of the year, even though you aren't required to do so.