Mandatory IRA Withdrawals

[Bob318]

I turned 72 this year in March and must start mandatory IRA withdrawals. It says I have to make my first withdrawal by April 15 of 2023 I believe. If I do it next year in 2023, do I show that as 2022 income?. Do I have to withdraw again in 2023 by December 31?

[VolvoGirl]

No you don't show it as 2022 income.  It will go on your 2023 return you file in 2024.  And you will still have to take a 2023 withdrawal by dec 31, 2023.   So you will have 2 RMD in 2023.

[Bob318]

Thank you for clarifying that.

[AR_CPA]

Hello Bob318, 

If you turned 72 this year in 2022, you must make your first withdrawal by April 1, 2023.  but you also need to make your second withdrawal by December 31, 2023, and December 31 for each year going forward.  So if you wait until April 1, 2023 to take your first RMD (required minimum distribution) then you will have a higher income in your tax year 2023 which may cause more of your Social Security benefit to be taxable and also it may put you in the higher tax bracket.  If you don't want that to happen, you may want to take your first RMD with in the tax year 2022, even though you don't get penalized if you wait until the April 1, 2023.