My mom is of RMD age (75) and opened a brand new SEP IRA in 3/2021 (for tax year 2020) so had $0 in it until 3/2021. Is she required to still take a 2021 RMD from it?
03865
3 Replies
Critter-3
Level 15
Nov 20, 2021 12:22:55 PM
Of course not ... there was nothing in the SEP on 12/31/2020 so there is no RMD ... o% of zero is still zero. Confirm this with the SEP custodian.
fanfare
Level 15
Nov 20, 2021 4:31:46 PM
The RMD is based on the year end value of the prior year.
fanfare
Level 15
Nov 20, 2021 4:43:46 PM
If your mom already has other IRAs, the RMD will be required.
The contribution to a new or existing account in 2021 will have no effect.
The RMD can be taken out of any account or accounts you wish, including the new SEP.