According to current law, the IRS mandates RMD’s (Required Minimum Distributions) from your qualified account by April 1 of the year following age 70.5.
RMD Delay First Year
Given the above IRS requirement, it is possible to delay your first RMD until April 1 of the following year, once you reach the 70.5 threshold.
If your Birthday as of the year 2017 is between 7-1-46 and 6-30-47 YOU CAN delay your initial mandated RMD, however by doing this, you will have two RMD’s in 2018 tax year.
- Higher/Lower Income
- Bigger/Smaller Expenses
- More/Less Donations
These are a few items to consider when delaying or taking that initial RMD.
Feel free to reach out to us if you have any questions!
After this decision … the IRS makes it easy, each year take your RMD and pay the taxes, only on the first RMD, is the delay allowed!
Have a great “Smart Tax Delay” Day!
John A. Kvale CFA, CFP