If I am 70 in November, when will I be required to make my first RMD, and can I avoid taking the initial withdrawal and the second withdrawal in the same year?

I’ll be 70 in November 2018 and I want to prepare for the required minimum distributions (RMD) that I will be required to take on the total amount ($450,000) that I have saved in two annuities and and in one 401(k) account. Is the process for RMDs different for annuity accounts and 401(k) accounts? For tax purposes, I'd prefer that the initial withdrawal and the second withdrawal do not occur in the same year, but I'm confused about the date that I am required to make my first withdrawal: is it 2019 or 2020? After the initial withdrawal, are all other withdrawals required by December 31 of the current year? Can any of the proceeds be invested in a Roth IRA account or do I have to use a brokerage account?

Investing, 401(k), Annuities, IRAs, Taxes
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June 2018

RMD's will work the same for the annuities and the 401k account.  As you're turning 70 in November 2018, you will be 70.5 years old in May 2019.  Therefore, your first RMD is for the year of 2019.  For this first RMD, you would have until April 2020 to remove it from your account(s), but you'd still need to take the 2020 RMD by December 31, 2020.  If you opt to take the delayed 2019 RMD in 2020, you would have two RMD's to claim as income in 2020.  It sounds like you want to spread them out, so be sure to take the 2019 RMD by December 31, 2019.

All subsequent RMD's need to be taken out by December 31st of the current year.  Only your first RMD is eligible to be delayed until April of the following year.

You cannot roll the RMD into a Roth IRA.  However, if you have earned income, you can continue to make new Roth IRA contributions.

Thanks for your questions.

June 2018
June 2018
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June 2018