RMDs

[Felicia]

Since April 1 falls on a Sunday, is there an extension to April 2nd for those who wish to delay the first RMD?

[Guest allancoleman]

Probably , Felicia , but depending upon the date of your birthday , " Waiting can be costly : If you decide to wait until your RMD ( which is April 1 of your second distribution year ) to take your first required distribution , you must still take the full required distribution for the second year by December 31 . That means you would have to take two required distributions in the same year , which would push you into a higher income tax bracket " .

If you aren't happy having to take a single RMD in one tax calendar year , I doult you'll be over joyed having to take two . Also keep in mind that the RMD figure from your custodian may NOT be correct and I would do your own calculation and round off to a higher number to make sure you take enough . The penalty for not taking enough can be harsh .

I realize that my post may be too late for you , Felicia , but it could really help others who aren't 70 quite yet to figure when to take their first required minimum distribution . Sometimes the old adage that you don't have to take your first distribution until April 1st after the year you turn 70 1/2 is NOT always the best advice .

[Guest mjb]

Under IRC 7503 the time for performing any act required under any revenue law is automatically extended to the next business day. The IRS however refuses to accept extensions that are not required as part of the filing of a tax return. The tax court has rejected the IRS narrow interpretation of 7503.