Taxpayer turned 70.5 In April 2017.... gave first RMD to charity in late April 2017.... I think that one was required by April 1, 2018. WHEN is the second one required to be made? By December 2018? I am getting confused because the birthday was in 2016, but the half birthday crossed into the next year. I am almost positive that because 70.5 went over into the next year, it wasn't due until 2018.... But when I look at second year examples, I don't know when to begin the count.... have searched TTB and past posts without success. Thoughts?
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Answer
The first RMD needs to be taken anytime in the year you turn 70.5. In your case that is 2017. The next one needs to be taken any day in 2018. you are confusing yourself with the scenario in which you skip the first distribution (in your case this would be 2017) and then take 2 distributions in 2018, the first of which before a certain date, maybe April 1. -
RMD of the required vs due type
As noted, the first payment is "due" in the calendar year in which you turn age 70½. **BUT** you can defer that payment until the following year (it's optional).
That changes nothing for all years after Year #1.
You need to be aware that, if you delay the Year #1 payment (OK, it likely saves/defers some taxes) that you might shoot yourself in the foot in the next year when you have TWO distributions to take. Depending on the tax return involved, you could see everything from more of Soc Sec being taxed to hitting some of the Obamacare taxes to even getting to know Miss IRMAA.
The vast majority of my clients have chosen NOT to delay the Year #1 distribution, especially when the related issues above become relevant.
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