First RMD for 4/2003 retiree, age 77; does 2004 distribution include 2003 income?

[Guest Powers]

I don't usually work with RMD's but my assistant is out ( I am starting to hate OPVs (Other people's Vacations). I had a question come up about a participant who retired at age 77 in April of 2003. I have not been keeping exactly current on the regs as they relate to RMD's but my understanding is that his RBD is April 1, 2004. What I am not clear on is if that distribution in 2004 is included in 2003 income? Am I totally off base here? Help! It is Friday and I can't think.

[Tom Poje]

it depends on when the check is cut.

If you actually pay him out in 2003, then he will need a 1099R for 2003 which will be included on the 2003 tax form.

There are reasons for paying someone out before 4/1/2004.

suppose distribution = 20,000

and the 12/31/04 distribution = 20,000

that would be 40,000 in 2004 as oppossed to 20000 in 2003 and 20000 in 2004.

it might make a difference tax wise.