timing of switch to RMD method

You are here:
  • KB Home
  • timing of switch to RMD method
< Back

L1: timing of switch to RMD methodI receive monthly payments under a SEPP plan using the amortization method started in 2006. I alreadyreceived my Jan. 09 payment. I want to utilize the one-time switch to the RMD method.Can I switchduring any part of the year? Is the newly calculated amount for the year fixed? Should I consider the larger first payment I received in Jan. 09 as a part of the total 2009 distribution. Do I need to readjust the remaining 11 months downward to match the annual 2009 calculated amount?2009-01-20 17:59, By: shapi, IP: []
L2: timing of switch to RMD methodShapi,From earlier postings, I have seen most recommend this one time RMD switch be done at beginning of a new calendar year, but even if you have already taken the JAN ’09 payment, you can compute it on the Year end 2008 balance, and then reduce it (this year total) for the payment already received in JAN. The “last” 11 payments of 2009 (if paid monthly) has to add up to the difference between RMD total for 2009 and the already rec’vd in Jan 2009 amount. I also read that it is recomputed for each new calendar year, using the previous year end balance, (and a new age factor) so using 12/31/2009 balance you would compute the total payment for 2010, and again, if your payment for Jan 2010 is already recv’d, repeat the exercise of adjusting the final 11 payments to reflect that, by notifying your custodian. Hope this helps. KEN2009-01-20 19:44, By: Ken, IP: []