When Do I reach Age 70 ½ for RMD Purposes?
Definition You reach age 70 1/2 ( 70.5) 6-months after the 70th anniversary of your date-of-birth. The significance of age 70 1/2 The significance of
February 12, 2009
The IRS is ahead of you on this one.
Under the RMD regulations, the December 31 fair market value (FMV) used to calculate your RMD must be calculated as follows:
December 31 FMV , plus
Therefore, in the example you gave, you are required to add (back) the amount that you rollover within 60-days to your December 31 FMV, in order to determine your correct RMD amount. In short; you cannot avoid taking your RMD by completing a distribution before year-end, only to rollover the amount (within 60-days) after the end of the year. Your IRA custodian will likely use the December 31 FMV they have on record when they calculate your RMD. Therefore, it is your responsibility to ensure the amount is refigured, using the adjusted December 31 FMV. Individuals who convert amounts to a Roth IRA, and recharacterize the amount after December 31, must add the conversion amount plus any NIA to the December 31 FMV of the IRA to which the recharacterization is made, for purposes of determining the IRA owner’s RMD.
Definition You reach age 70 1/2 ( 70.5) 6-months after the 70th anniversary of your date-of-birth. The significance of age 70 1/2 The significance of
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