SECURE ACT First RMD already started prior to 72

[MaryOKTPA]

Has anyone seen verbiage about a person who took their first RMD in 2019 (when they turned 70 1/2) but now under the SECURE Act  are they required to take their RMD in 2020 or can they skip and take this RMD when they turn 72 (in 2021)? I have seen several articles that contradict each other about what is allowed.

 

Thank you

[DMcGovern]

It's my understanding that the Act is effective for distributions made after 12/31/19, and are for individuals who attain age 70 1/2 after 12/31/19:

Quote

SEC. 114. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY DISTRIBUTIONS.

(a) In General.—Section 401(a)(9)(C)(i)(I) of the Internal Revenue Code of 1986 is amended by striking “age 70½” and inserting “age 72”.

(b) Spouse Beneficiaries; Special Rule For Owners.—Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each amended by striking “age 70½” and inserting “age 72”.

(c) Conforming Amendments.—The last sentence of section 408(b) of such Code is amended by striking “age 70½” and inserting “age 72”.

(d) Effective Date.—The amendments made by this section shall apply to distributions required to be made after December 31, 2019, with respect to individuals who attain age 70½ after such date.

 

This requires an amendment to the document provisions and is optional; plan sponsors may choose to retain an earlier age.

[RatherBeGolfing]

35 minutes ago, DMcGovern said:

individuals who attain age 70 1/2 after 12/31/19

Correct.

[CuseFan]

3 hours ago, MaryOKTPA said:

can they skip and take this RMD when they turn 72 (in 2021)

so they answer to your question is no - if person was 70.5 prior to 2020 then they must continue RMDs

[Larry Starr]

25 minutes ago, CuseFan said:

so they answer to your question is no - if person was 70.5 prior to 2020 then they must continue RMDs

Exactly correct!

I'm teaching a quick overview for the Boston Tax Institute (I'm on the faculty) next week as part of our annual 2 day Federal Tax course,  and putting together a 3 1/2 hour/half day seminar for early February with additional presentations later in the year.