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Avoid Pitfalls As Retirement Distribution Deadline Nears
From the article: "RMD first-timers — those who turned 70½ just this year — get an extension to April 1."
Does this effectively mean that someone who turned 70 1/2 in 2016 can wait to take their first RMD until April 1, 2017? I would assume that this RMD would impact 2017's income tax return with two RMDs...one for 2016 (taking in April of 2017 based off of 2015's year end balance of deferred accounts) plus 2017's RMD based off of the year end balance of 2016).
Do I have this right?
Note: I found my answer further down the page...article was a bit choppy due to ads.
@bee, yeah, you can defer for that year, but it may well skew (increase) taxes.
I have not yet taken SS and am 70 next spring, when it happens automatically. So I consulted w a couple of financial planner friends about RMD, both of whom said the same thing: 'There's little you can do now as to timing and taxes, or even in the past, but you can take a good chunk now, prematurely, and probably pay taxes on that, but in any case reduce your future RMD amounts.' So I did that this week. I happened to earn a bunch of freelance money this year too, so we shall see how bad it is next April.
Comments
http://www.sfgate.com/business/article/Avoid-pitfalls-as-retirement-distribution-10810884.php
"RMD first-timers — those who turned 70½ just this year — get an extension to April 1."
Does this effectively mean that someone who turned 70 1/2 in 2016 can wait to take their first RMD until April 1, 2017? I would assume that this RMD would impact 2017's income tax return with two RMDs...one for 2016 (taking in April of 2017 based off of 2015's year end balance of deferred accounts) plus 2017's RMD based off of the year end balance of 2016).
Do I have this right?
Note: I found my answer further down the page...article was a bit choppy due to ads.
I have not yet taken SS and am 70 next spring, when it happens automatically. So I consulted w a couple of financial planner friends about RMD, both of whom said the same thing: 'There's little you can do now as to timing and taxes, or even in the past, but you can take a good chunk now, prematurely, and probably pay taxes on that, but in any case reduce your future RMD amounts.' So I did that this week. I happened to earn a bunch of freelance money this year too, so we shall see how bad it is next April.