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  1. #1
    Join Date
    Feb 2019
    Posts
    2

    Default IRA - First Time Required Minimum Distribution at Age 70.5

    Hello!
    I will turn 70 1/2 before June 30th this year and am required to make my first minimum distribution from my IRA. I see where I can defer this distribution the FIRST year to April 1,2020. My question is: May I take a partial RMD for 2019 and the rest of 2019's RMD in 2020 along with the RMD for 2020? I know that would have to be reported as income in 2020. Thanks.

  2. #2
    Join Date
    Sep 2010
    Posts
    18,903

    Default Re: IRA - First Time Required Minimum Distribution at Age 70.5

    Yes, you can do that. The gotcha you need to look out for is whether you incur more tax liability by deferring things than you would if you just took it all on time.

  3. #3
    Join Date
    Mar 2013
    Posts
    16,744

    Default Re: IRA - First Time Required Minimum Distribution at Age 70.5

    Right. Anything you don't take in 2019 you'll have to take in 2020 plus the 2020 RMD. Add the two together and the tax bite will be on that total.

    That could be worth doing if you expect your 2020 income to be much lower than your 2019 income. Otherwise it won't make any difference. You'll pay it now or you'll pay it later, but you'll pay it.

    How much would your RMD be if you took it in 2019?

  4. #4
    Join Date
    Feb 2019
    Posts
    2

    Default Re: IRA - First Time Required Minimum Distribution at Age 70.5

    How much would your RMD be if you took it in 2019?
    ~$25,700 & Thanks for the responses!

  5. #5
    Join Date
    Mar 2013
    Posts
    16,744

    Default Re: IRA - First Time Required Minimum Distribution at Age 70.5

    I suggest you get some tax software and run some scenarios comparing the tax results if you take a partial this year and a larger next year. You'll be using 2018 tax rates but it'll give you a ball park comparison.

    Also keep in mind that, if you are collecting SS, the larger the distribution, the bigger the chunk of your SS that gets taxed.

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