IRA Distribution Question: Regarding "59.5 age rule"

bee

To avoid a 10% early withdrawal tax penalty, do distributions from an IRA need to start after the "exact day" one turns 59.5 years old?

Since these IRA distributions are reported as income "in the year" that they were distributed it seems logical that distributions could be started anytime "in the year" one turns 59.5 or does one have to wait until after the "exact day" one turns 59.5"?

The IRS details RMD for someone "turning 70.5" this way:
Required minimum distributions (RMDs) must be taken each year beginning with the year you turn age 70 1/2

I am looking for this kind of language for IRA distributions at 59.5.

Ted

@bee: Here is your answer. Hope this helps.
Regards,
Ted
https://www.irahelp.com/forum-post/13114-withdrawal-age-595

bee

Thank @Ted,

Your link answered my question and makes me wonder about another...the 60 day rollover rule and calculating your RMD after 70.5.

The RMD rule is as follows:
The RMD for each year is calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy.

Could a substantial rollover (once a year for up to 60 days) impact this RMD calculation if the rollover were taken just prior to December 31 and returned to the account within 60 days rollover window?

Could this be a way to "control" the amount of the RMD paid in any given year after 70.5?

In a sense, the rollover temporarily removes enough of the balance that is reported in the IRA on December 31st to impact the RMD calculation for that given year.

I'll ask Ed...thanks for the link.

Update on my above question:
When calculating the RMD, the outstanding rollover is required to be added back to the year-end balance before dividing by the distribution period.

Ted

@bee & MFO Members: Six facts about the 60 day rollover rule.
Regards,
Ted
https://www.irahelp.com/slottreport/6-facts-every-ira-owner-should-know-about-60-day-rollover-rule