I turned 70 1/2 in January of this year (2019). I thus turn 70 1/2 and 71 in the same year. Which RMD (Distribution Period) should I use - or even both? Please clarify.

[okaestner]

I turned 70 1/2 in January of this year (2019). All of the IRS examples show cases where people turn 70 1/2 in the second half of a year. In my case I thus will turn 70 1/2 and 71 in the same year. Which RMD amount (Distribution Period from IRS table) should I use - or even both? Please clarify

[fanfare · Accepted solution]

you have to take your first RMD. you have until April 1 2020 to complete the distribution.  Your second RMD must be taken by end of 2020 (using the next divisor).

[okaestner]

The two responses show my dilemma: do I use the 70 1/2 rule and thus the first RMD factor or the age rule and thus the 71 year factor? My 401k plans seem to think it is the 71 year factor which overrides the 70 1/2 rule if the latter date falls into the same year when you turn 71.

[Hal_Al]

The 2nd response mostly address timing of the distribution. When he says  "next divisor" he means the age 72 divisor.
So, your  401k plan adviser is correct, you use the age 71 divisor for your 2019 distribution, whether you take it in 2019 or in 2020 before April 1.

[okaestner]

OK, thanks. Now I am putting 2 and 2 together 🙂

[fanfare]

[removed]

[fanfare]

removed

[Hal_Al]

 Use your age as of the end of the year, 71 in your case. Your distribution factor is 26.5.

Reference: https://www.fool.com/retirement/iras/2018/09/09/2018-ira-rmd-table-how-much-do-i-have-to-withdraw.as...