RMD option

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L1: RMD optionI have 2-72T’s If i convert one to a RMD an take the annual amount in Jan 2010 do I not have the option in the course of 2010 of withdrawing additional funds to equal the original annual used to set up the 72T? ie. 25,000 aprox. original, distribute 10,000 RMD Jan. need additional funds later in year 15,000 still available. 1099R total 2010 has not changed. RMD option not exercized in 2010 after all.2009-12-31 15:09, By: max options, IP: []
L2: RMD optionYou haven’t made any change to the RMD method until you reach a point where you have taken out funds that exceed the RMD calculation typically based on the previous 12/31 balance.With that said, your question is going in circles. If your calculated 2010 distribution is $35,000, merely take the $35k and make the switch in 2011.For your consideration… start playing with your SEPP plan and you will almost certainly end up paying taxes and penalties with perhaps a visit from your friendly IRS Auditor.2009-12-31 16:24, By: Gfw, IP: []

L3: RMD optionclarification. 2010 I must take 25,000 to comply with the original 72T plan. Or if I use 2009 year end balance and my 2010 age and recalculate using RMD I could take only 10,000. Question is: If I take 10,000 early in 2010 can I elect to recieve another 15,000 later in 2010 if needed and not change my 72T from its original form. Why? keep me out of a higher tax bracket and would not lock me in RMD for 2011.2009-12-31 19:33, By: max options, IP: []

L4: RMD optionYes, you can do that. You are not filing any intent with the IRS to change to the RMD method, and keeping your options open by depressing your distributions early in the year is no problem whatsoever. In fact, even if you went slightly over the RMD calculation, you could correct to that amount by doing a 60 day rollback of one distribution to the IRA. Note that you must have a rollover available to you under the one rollover rule to do that.2009-12-31 21:38, By: Alan S., IP: []