Once age 70 ½ is reached, you need to take your first required minimum distribution (RMD) from your IRA accounts. You turned 70 ½ in 2017 if you were born between July 1, 1946 and June 30, 1947. You always use the age you are on the last day of the year.
Generally, you need to take your RMDs by December 31st of the year for which it is due. But for your first RMD, you can defer the distribution to April 1st of the following year. Isn’t it always best to defer income if you can? If you decide to defer that first RMD from 2017 to 2018, you need to realize that you will end up with two RMDs in 2018 (the 2017 & 2018 RMDs). Generally for many taxpayers, the bunching of income is not a good thing.
Who is responsible for computing and remitting the RMD? Many taxpayers mistakenly think [Read more…] about Required Minimum Distributions (RMDs) – The Basics