Thank you. I have no reason to doubt the correctness of what you said. But I fail to understand the IRS' logic behind this calculation. The calculation for the non-taxable portion of the RMD does not seem to make sense. It contradicts what is said in this article, which makes more intuitive sense but is apparently wrong (perhaps it was generated by AI since the website is called "taxgpt"): https://www.taxgpt.com/answer/when-i-receive-rmd-from-ira-how-can-i-calculate-the-amount-which-was-n.... Best not to rely on AI for tax advice!
In any case, the net effect of whether the IRS uses the end of year IRA balances from last year or from the year prior (the latter being the balances used in the RMD determination) would generally not be very significant, so this is probably not worth being concerned about. It just seems odd though.
