When to take first RMD?

[mystang52]

Can someone give me a quick down and dirty regarding RMD?
DW turns 72 in December of 2023.
I believe she must make her first withdrawal no later than 4/1/2024?
If that's correct, would she then have to take a second RMD by end of 2024?
If yes to that second RMD, then, all things being equal is it likely we'd be better off taking that first RMD this year, for tax purposes?

I turn 72 in August 2024, if that factors into the decision process.

 

[braumeister]

My thoughts in blue:

Can someone give me a quick down and dirty regarding RMD?
DW turns 72 in December of 2023.
I believe she must make her first withdrawal no later than 4/1/2024?

Yes

If that's correct, would she then have to take a second RMD by end of 2024?

Yes

If yes to that second RMD, then, all things being equal is it likely we'd be better off taking that first RMD this year, for tax purposes?

No, that wouldn't count as an RMD.

I turn 72 in August 2024, if that factors into the decision process.

 

[GalaxyBoy]

If yes to that second RMD, then, all things being equal is it likely we'd be better off taking that first RMD this year, for tax purposes?

By “this year” did you mean to say 2023?

Also, keep an eye on the current legislation making its way through the process as it could add one year to your description above.

 

[Car-Guy]

Also, keep an eye on the current legislation making its way through the process as it could add one year to your description above.

Correct, if it's signed into law as it was written about a week ago.

 

[Graybeard]

I turn 72 in August 2024, if that factors into the decision process.

Your age has nothing to do with her RMD, the RMD is from her tax deferred account not yours. Your RMD and her RMD are as separate as hers and mine!

 

[rk911]

Can someone give me a quick down and dirty regarding RMD?
DW turns 72 in December of 2023.
I believe she must make her first withdrawal no later than 4/1/2024?
If that's correct, would she then have to take a second RMD by end of 2024?
If yes to that second RMD, then, all things being equal is it likely we'd be better off taking that first RMD this year, for tax purposes?

I turn 72 in August 2024, if that factors into the decision process.

assuming you're putting the RMDs in your "pocket" and not going to charity thru a QCD, IMO for tax purposesyou're better off having the Mrs. take her RMD this weel. you're correct that since this is her first RMD she has until 4/1/23 to take her 2022 RMD. if you don't need the RMD consider opening a DAF and sending the RMD there. doing that is considered a charitable contribution for your taxes and you can take your time doling it out. just remember contributions are 1-way and permanent. if i'm not mistaken for TY22 charitable contributions are deductible to 65% of your AGI.

 

[audreyh1]

assuming you're putting the RMDs in your "pocket" and not going to charity thru a QCD, IMO for tax purposesyou're better off having the Mrs. take her RMD this weel. you're correct that since this is her first RMD she has until 4/1/23 to take her 2022 RMD. if you don't need the RMD consider opening a DAF and sending the RMD there. doing that is considered a charitable contribution for your taxes and you can take your time doling it out. just remember contributions are 1-way and permanent. if i'm not mistaken for TY22 charitable contributions are deductible to 65% of your AGI.

His DW turns 72 in 2023. She can’t take an RMD this year.

 

[rk911]

my error but the info is still valid for next year.

 

[audreyh1]

my error but the info is still valid for next year.

Yes.

I don’t remember if people turning 72 next year catch a break and don’t have to start RMDs until the year they turn 73.

 

[rk911]

Yes.

I don’t remember if people turning 72 next year catch a break and don’t have to start RMDs until the year they turn 73.

has that been passed and signed by the pres? either way i had to take this year and i’ll be 73 next year. wife will be 72 next year but she’s been taking distributions from 2 inherited IRAs. everything went to our DAF.

 

[audreyh1]

has that been passed and signed by the pres? either way i had to take this year and i’ll be 73 next year. wife will be 72 next year but she’s been taking distributions from 2 inherited IRAs. everything went to our DAF.

It’s been passed and sent to the president who is expected to sign shortly.

Those turning 72 this year still had to start RMDs even with new law.

So you do itemized deductions for charitable contributions? Seems like QCDs would be better than funding DAFs as QCDs are taken off your income.

 

[rk911]

It’s been passed and sent to the president who is expected to sign shortly.

Those turning 72 this year still had to start RMDs even with new law.

So you do itemized deductions for charitable contributions? Seems like QCDs would be better than funding DAFs as QCDs are taken off your income.

yes, we itemize. we started the process too late this year for the QCD but we’ll likely do that in ‘23. we’re maximizing our charity deduction this year (we’ll probably end up donating in excess of 65%). we just got the DAF contribution done last friday. and we have a substantial capital loss carry forward to offset any capital gains we might have (uh huh). not worried about taxes.