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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2421
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

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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 [email protected] unless you will be answering me on this website. Thank you in advance for your assistance.

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

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