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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1763
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I turned 70 on March 25, 2013. Realizing that I would turn

Customer Question

I turned 70 on March 25, 2013. Realizing that I would turn 70 1/2 0n Sept 25, I knew I would have an IRA RMD requirement for 2013. So, I contacted my financial advisor to obtain the amounts I would need to deposit. I withdrew those amounts in Feb 2013 or so
and of course had appropriate taxes withheld. Now I hear that since I didn't wait until AFTER Sept 25 2013 when I reached 70 1/2, these withdrawals will not satisfy my 2013 tax year RMD requirements. I need your professional opinion and suggestions about this. My e-mail isXXX@XXXXXX.XXX unless you will be answering me on this website. Thank you in advance for your assistance.
Submitted: 10 months ago.
Category: Tax
Expert:  Anne replied 10 months ago.

Anne :

Hi

Anne :

Thank you for using justanswer.

Anne :

 


What are Required Minimum Distributions?


Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired.

Anne :

Please notice that you are required to take the minimum distribution IN THE YEAR in which you turn 70 1/2, and that's what you did

Anne :

I'm sorry that you received some inaccurate information, but I hope that this helps set your mind at ease.

Anne :

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.

Customer:

I understand what you told me. My question is...since I turned 70 on March 25, 2013 and made my withdrawals before then but still in the calendar year 2013, do my withdrawals in 2013 meet the RMD requirements since I did not wait until after I was 70 1/2 to withdraw the funds? Please respond ASAP. Thanks

Anne :

Yes......your distributions absolutely meet the RMD requirements

Customer:

Ann: you have been very patient. I just want to make sure all of my 2013 withdrawals will be classified even if I made the early in 2013...before I was 70?

Anne :

I'm sorry.........you just confused me............I read that you turned 70 on 3/25/13

Anne :

you took the distributions in 2013

Anne :

Sorry, I reread the question and I get where you're coming from

Customer:

Yes, I turned70 3/25/13...but made my fist and second RDM around Fb 2013.

Anne :

you have to remember that the IRS will only receive a


Form 1099-R - Internal Revenue Service

Anne :

they will see that you turned 70 in 2013, so whether you took the money out before you reached age 70 1/2 , or you were only 70 , (and yes, only 69 )

Anne :

they're laws require you to take a minimum distribution IN THE YEAR you turn 70 1/2

Customer:

So, it sounds like I am in compliance?

Anne :

yes you are

Customer:

Thanks so much for your assistance. You were great...you get an "Excellent

Customer:

"smiley face

Anne :

Thank you!

Anne :

Lol

Anne :

I'm glad I was able to help

Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1763
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Anne and other Tax Specialists are ready to help you
Expert:  Anne replied 10 months ago.
Thank you very much for the excellent rating and your generous bonus!

Please feel free to ask for me by name by putting "for Anne" in the question line if I can help you in the future.

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