How to determine RMD on 1099R MARYLAND STATE RETIREMENT AGENCY (turned 70 July2016)

[fanfare · Accepted solution]

If receiving  monthly payments, just answer YES to the confusing RMD question.

[dmertz]

If your 70th birthday was in July 2016, you have no RMD for 2016.

Since you will reach age 70½ in January 2017, 2017 is the first year for which you will be required to receive an RMD.  Looking up your age of 71 in July 2017 in Table III of IRS Pub 590-B, you'll find that you must divide your December 31, 2016 account balance by 26.5 to determine the amount of the RMD you are required to receive for 2017.

Because 2017 is the first year for which you are required to receive an RMD, you have until April 1, 2018 to complete your 2017 RMD.  If you do delay your 2017 RMD until 2018, you'll have to report both your 2017 and 2018 RMD amounts as income on your 2018 tax return.