Retirement tax questions

The amount of the RMD needs to be calculated using the total December 31, 2016 value of *all* Traditional IRA accounts although the RMD can be taken from any, or any combination of accounts as long as it is taken by December 31,2017 (or put off until April 1, 2018 for the first RMD - If put off then both the 2018 RMD also must be taken before the end of 2018).

The Traditional IRA distribution taken in Feb of 2017 that satisfies or exceeds the 2017 RMD will be reported on your 2017 tax return next year in 2018, not on your 2016 tax return.    Any tax that is withheld will also apply to your 2017 tax return.

Neither the RMD or tax withheld on a 2017 distribution will have anything to do with the 2016 tax return due this April in 2017.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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