IRA and 401K Required Mandatory Distribution (RMD)

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Prudence
Posts: 395
Joined: Fri Mar 09, 2012 4:55 pm

IRA and 401K Required Mandatory Distribution (RMD)

Post by Prudence » Mon Nov 13, 2017 8:39 am

I have read the IRS' RMD rules but am not 100% sure I have the correct understanding. I have a 401K and a traditional IRA. I retired in April 2016. My 70th birthday was December 2016 so I reached age 70.5 in May 2017. So, I believe I am required to make my first RMD from the 401k and the IRA by April 1, 2018. And my second RMD by December 31, 2018. Am I correct about both dates?

In actuality, I made my first RMD in February 2017. So, I believe my second RMD is not due (required) until December 31, 2018. Correct again?

https://www.irs.gov/retirement-plans/pl ... tions-rmds

JW-Retired
Posts: 6999
Joined: Sun Dec 16, 2007 12:25 pm

Re: IRA and 401K Required Mandatory Distribution (RMD)

Post by JW-Retired » Mon Nov 13, 2017 8:55 am

Prudence wrote:
Mon Nov 13, 2017 8:39 am
My 70th birthday was December 2016 so I reached age 70.5 in May 2017. So, I believe I am required to make my first RMD from the 401k and the IRA by April 1, 2018. And my second RMD by December 31, 2018. Am I correct about both dates?
Yes, your "1st RMD" is for 2017 and can be taken any time between 1/1/2017 and 4/1/2018. It's only for this first one that you get an extra 3 months to get your act together. The "2nd RMD" is for 2018 & is due by the end of 2018.

If you elect to take both 1st & 2nd RMDs in calendar 2018 then that is the year both will be taxed.
JW
Retired at Last

User avatar
plannerman
Posts: 678
Joined: Wed Feb 21, 2007 10:42 pm
Location: NC Mountains

Re: IRA and 401K Required Mandatory Distribution (RMD)

Post by plannerman » Mon Nov 13, 2017 9:47 am

I hope you meant RMDs plural. One from each 401(k) and at least one from all IRAs.

plannerman

Prudence
Posts: 395
Joined: Fri Mar 09, 2012 4:55 pm

Re: IRA and 401K Required Mandatory Distribution (RMD)

Post by Prudence » Mon Nov 13, 2017 10:01 am

plannerman wrote:
Mon Nov 13, 2017 9:47 am
I hope you meant RMDs plural. One from each 401(k) and at least one from all IRAs.

plannerman
Yup. Thanks!

Post Reply