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First RMD for 70.5


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Good morning to all,

A client has posed an interesting question that I do not see addressed in our version of the Distribution Answer Book nor Sal's encyclopedia.

John will turn 70.5 on July 7, 2019.  Although he could delay until April 1, 2020, he wants to take his first RMD in 2019.

His question:  Does he literally have to be 70.5, thus taking his first RMD after July 7, 2019, or is any date in 2019 okay (like tomorrow for instance)?  My first instinct is to think that any day in 2019 should be fine, but I don't know that for a fact.

Thank you in advance!



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On 2/6/2019 at 1:12 PM, Bird said:

Any day in 2019 is fine

And that's because what matters is the YEAR in which the 70 1/2 birthdate occurs.  Anytime in that year it's an RMD if there is a distribution.

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089

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Thanks, Larry and Tom.  Tom, I am just finally becoming aware of what you are saying about the rollover.  I have worked for firms where everyone thought we were 'off the hook" for calculating the RMD if the participant rolled all of his money out to an IRA in the year he turned 70.5.  We used to think it then became the problem of the entity holding the IRA, not us.  However, this year I learned otherwise.  Thanks for the reminder, though!

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