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When do I take my first RMD from a pension lump sum rollover to an IRA?
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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When do I take my first RMD from a pension lump sum rollover to an IRA?
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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When do I take my first RMD from a pension lump sum rollover to an IRA?
(In most cased a pension, once established, cannot become a lump sum distribution that can be rolled into an IRA.)
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When do I take my first RMD from a pension lump sum rollover to an IRA?
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When do I take my first RMD from a pension lump sum rollover to an IRA?
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When do I take my first RMD from a pension lump sum rollover to an IRA?
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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When do I take my first RMD from a pension lump sum rollover to an IRA?
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When do I take my first RMD from a pension lump sum rollover to an IRA?
The OP said the "rollover" is in progress so there won't be any 1099-R until next January. I would suggest that the OP discuss this with the pension plan administrator to see if the RMD was withheld from the rollover and they will send the OP a separate check for the 2019 RMD amount.
If they did not take out the RMD, then the OP probably need to have the new IRA custodian distribute the RMD amount of the pension, not the IRA, as a "return of excess contribution" so that it will not be subject to penalty.
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When do I take my first RMD from a pension lump sum rollover to an IRA?
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When do I take my first RMD from a pension lump sum rollover to an IRA?
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When do I take my first RMD from a pension lump sum rollover to an IRA?
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