RMD

[sasuga]

How to I calculate my RMD amount (3 different accounts) and where do I enter the amount on my tax return?

[LoriC17]

Hello,

If your financial institution does not calculate the RMD for each account then you can complete this with the following steps.

• First you will take the final balance  of  prior Dec 31st and then divide it by a life expectancy factor that the IRS publishes in Tables in Publication 590-B. I will include the link to this publication and you will chose the table based on your situation.

https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs#:~:...).

Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reach age 72 in 2023, the required beginning date for your first RMD is April 1, 2025, for 2024. Notice 2023-23PDF permits financial institutions to notify IRA owners no later than April 28, 2023, that no RMD is required for 2023.

You will receive a 1099-R at year end and this will be entered into retirement section of tax return. Within TurboTax you will then be asked questions in regards to your RMD.

[sasuga]

Hi Lori C17,

Thank you for your response.  However, I can't figure out what RMD table to use in Publication 590-B.  I turn 73 in May of 2024.   I am the IRA owner and my wife, who is 8 years younger than I, is the beneficiary.  Can you please tell me what RMD table I must use?  

Best regards

[VolvoGirl · Accepted solution]

Use Table III  (Uniform Lifetime)  Page 65.  It says for Married owners whose spouses aren't more than 10 year younger.  But that is for 2023.  You don't need to take a RMD until next year 2024 and actually you have until April 2025 to take your first RMD.  But then you will have to take 2 RMD in 2025.  

[VolvoGirl · Accepted solution]

Usually your IRA  custodian will tell  you each January how much RMD you need to take.  So you should get letters next January.   Then when you take a RMD or distribution they will send you a 1099R form to enter into your tax return.  Those come out in Jan for the prior year.  So you will get a 1099R in Jan 2025 if you take your RMD in 2024.  

[sasuga]

Will do.  Thank you very much.  Be well

[sasuga]

I'm sorry to bother you again.

Below is what the IRS publication says:

 Use Table III if you are the IRA owner and your spouse isn't both the sole designated beneficiary of your IRA and more than 10 years younger than you."

I am the IRA owner.  My wife is the sole designated beneficiary.  My wife is 8 year younger than I.

Do I still use Table III?

[VolvoGirl]

It's any of those 3 things listed.  You are the second one.   It's for both, either one.....

• Married Owners Whose Spouses Aren't More Than 10 Years Younger, and
• Married Owners Whose Spouses Aren't the Sole Beneficiaries of Their IRAs)

[sasuga]

Sorry, but I don't understand your reply.

Should I still use Table III?

[VolvoGirl]

Yes use Table III.  

[sasuga]

Will do.  Thank you.