I turned 70 1/2 in 2018. Subsequently I had a pension from my former employer rolled over to an IRA in 2019. (The rollover should actually be complete tomorrow.) When do I need to take my first RMD? I was told that it would be in 2020 based on the value of the IRA on Dec, 31, 2019. But I was also told by someone else that I needed to take an RMD for 2018 since that is the year that I turned 70 1/2. Which is correct?
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The pension plan should have forced you to take the pension-plan RMD before rolling over the remainder.
If your 2018 RMD from the pension plan was not satisfied before or coincident with rolling over the pension plan to the IRA, the distribution from the pension plan included your pension-plan RMD and you impermissibly rolled the pension-plan RMD over to the IRA because RMDs are not eligible for rollover. This results in an excess contribution to the IRA that is subject to penalty unless resolved. You have until the due date of your 2018 tax return, including extensions, to obtain a return of the excess contribution from your traditional IRA.
What is the code in box 7 of the Form 1099-R from the pension plan?
The pension plan should have forced you to take the pension-plan RMD before rolling over the remainder.
If your 2018 RMD from the pension plan was not satisfied before or coincident with rolling over the pension plan to the IRA, the distribution from the pension plan included your pension-plan RMD and you impermissibly rolled the pension-plan RMD over to the IRA because RMDs are not eligible for rollover. This results in an excess contribution to the IRA that is subject to penalty unless resolved. You have until the due date of your 2018 tax return, including extensions, to obtain a return of the excess contribution from your traditional IRA.
What is the code in box 7 of the Form 1099-R from the pension plan?
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