• Required minimum distribution

    From Alan Meyer@21:1/5 to All on Sun Mar 4 18:10:19 2018
    My wife reached age 70-1/2 in 2017 and has (as I understand it) until
    April 1, 2018 to take her first required minimum distribution from her simplified employee pension plan and her IRAs. she has not taken those
    yet but will be doing it this month. Later in the year, before December
    31, she and I will take our RMDs for 2018.

    I presume that the RMDs for 2017 taken in 2018 are considered to be 2018 income, not 2017. Is that correct? I'm working on our taxes for 2017
    and don't want to miss including them if I'm wrong.

    Thanks.

    Alan

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  • From Retired@21:1/5 to Alan Meyer on Sun Mar 4 18:44:03 2018
    On 3/4/18 6:10 PM, Alan Meyer wrote:
    My wife reached age 70-1/2 in 2017 and has (as I understand it) until
    April 1, 2018 to take her first required minimum distribution from her simplified employee pension plan and her IRAs.  she has not taken
    those yet but will be doing it this month.  Later in the year, before December 31, she and I will take our RMDs for 2018.

    I presume that the RMDs for 2017 taken in 2018 are considered to be
    2018 income, not 2017.  Is that correct?  I'm working on our taxes for
    2017 and don't want to miss including them if I'm wrong.

    Thanks.

       Alan

    You are correct.
    That is one of the drawbacks of waiting until April of the following
    year for 1st RMD. You are going to be taxed on 2 RMDs that year. And
    it only works the 1st year. The 2nd and later RMDs must be done by Dec
    31 of the tax year. (And should be done way earlier).

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  • From Alan Meyer@21:1/5 to Retired on Thu Mar 8 23:27:42 2018
    On 03/04/2018 06:44 PM, Retired wrote:
    On 3/4/18 6:10 PM, Alan Meyer wrote:
    My wife reached age 70-1/2 in 2017 and has (as I understand it) until
    April 1, 2018 to take her first required minimum distribution from her
    simplified employee pension plan and her IRAs.  she has not taken
    those yet but will be doing it this month.  Later in the year, before
    December 31, she and I will take our RMDs for 2018.

    I presume that the RMDs for 2017 taken in 2018 are considered to be
    2018 income, not 2017.  Is that correct?  I'm working on our taxes for
    2017 and don't want to miss including them if I'm wrong.

    Thanks.

        Alan

    You are correct.
    That is one of the drawbacks of waiting until April of the following
    year for 1st RMD. You are going to be taxed on 2 RMDs that year. And it
    only works the 1st year. The 2nd and later RMDs must be done by Dec 31
    of the tax year. (And should be done way earlier).

    Thank you for the reply. I apologize for waiting so long to get back to it.

    Paying double in 2018 may actually work to my advantage. The Republican
    tax cuts will apparently lower my tax rate for 2018 and also raise the threshold before I get into the next higher bracket.

    Thanks again.

    Alan

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