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I’ll be 72 on July 15 2026 and required to take a distribution from my IRA which currently has $3 million in it. That accumulation was from maxing out on my 401K, IRA funding and a partial lump sum from a pension. My questions:
Since my date of birth is in the second half of the year do I take a half years RMD?
If I pass on the 2026 distribution and take it in 2027 will I have a “double” RMD that year and get killed in taxes etc?
With a high SS and pension I will likely be going to charity with some of the RMD.
"he deadline for taking your RMDs each year is December 31. You can delay taking your first RMD until April 1 of the year after you turn your RMD age.
If you delay your first distribution, you’ll have to take your first and second RMD in the same year. That could significantly increase your income that year, driving up your income tax bill.
It is possible to delay taking RMDs from your current employer-sponsored retirement plan if you’re still working when you reach RMD age"
I’ll be 72 on July 15 2026 and required to take a distribution from my IRA which currently has $3 million in it. That accumulation was from maxing out on my 401K, IRA funding and a partial lump sum from a pension. My questions:
Since my date of birth is in the second half of the year do I take a half years RMD?
If I pass on the 2026 distribution and take it in 2027 will I have a “double” RMD that year and get killed in taxes etc?
With a high SS and pension I will likely be going to charity with some of the RMD.
Beginning on Jan. 1, 2023, the age to start taking RMDs jumps from 72 to 73 and it increases again in 2033 to 75.
The SECURE 2.0 Act, raised the age for RMDs to 73 for those who turn 72 in 2023. Therefore, your first RMD must be taken by April 1 of the year after which you turn 72 (73 in 2023
You've been given good advice here on the withdrawal dates and the 'double dip' penalty.
Are all your 401K/IRA accounts held by one brokerage house, like Fidelity?? The big houses will help you with the math and the direct deposit distributions.
You do NOT have to include Roth accounts in these RMD's. Perhaps it would be a good idea to do some Roth Conversions in the few years leading up to your age 73 birthday. Take some of the money from IRA up to your next highest Tax Bracket now, and start it growing Tax-Free in a Roth.
You may want to meet with a CPA or other Professional to set up your Qualified Charities.
I’ll be 72 on July 15 2026 and required to take a distribution from my IRA which currently has $3 million in it. That accumulation was from maxing out on my 401K, IRA funding and a partial lump sum from a pension. My questions:
Since my date of birth is in the second half of the year do I take a half years RMD?
If I pass on the 2026 distribution and take it in 2027 will I have a “double” RMD that year and get killed in taxes etc?
With a high SS and pension I will likely be going to charity with some of the RMD.
2026 is a ways away. The rules will most likely change by then.
I’ll be 72 on July 15 2026 and required to take a distribution from my IRA which currently has $3 million in it. That accumulation was from maxing out on my 401K, IRA funding and a partial lump sum from a pension. My questions:
Since my date of birth is in the second half of the year do I take a half years RMD?
If I pass on the 2026 distribution and take it in 2027 will I have a “double” RMD that year and get killed in taxes etc?
With a high SS and pension I will likely be going to charity with some of the RMD.
AARP Calculator updated to June 2023.
With $3M already in it with a modest growth rate will grow some between now & then.
Take the full year's RMD in 2026. You can do it any day from January thru December.
Don't know about your other income. Adding in RMD you may already have a tax bomb in place.
Nobody knows today what tax rates will be by then.
A better question is with a 401k, IRA then a pension you may have to do 3 RMD with an amount from each. Then for tax purposes do 10% withholding from each distribution.
Since my date of birth is in the second half of the year do I take a half years RMD?
If I pass on the 2026 distribution and take it in 2027 will I have a “double” RMD that year and get killed in taxes etc?
I'm 70 now and been thinking about taking some Distributions prior 73 when the new tax rates revert back to the old higher rates. But a lot to consider.
You might take them sooner than later.
"At the end of 2025, the rates will revert to those in effect under pre-2018 tax law. Specifically, beginning in 2026, the rates will be 10, 15, 25, 28, 33, 35, and 39.6 percent."
I'm 70 now and been thinking about taking some Distributions prior 73 when the new tax rates revert back to the old higher rates. But a lot to consider.
You might take them sooner than later.
"At the end of 2025, the rates will revert to those in effect under pre-2018 tax law. Specifically, beginning in 2026, the rates will be 10, 15, 25, 28, 33, 35, and 39.6 percent."
I just read a little more about this. My RMDs will begin in 2028 and will add about $75K per year to my taxable retirement income. I'm not complaining, even knowing lots of tax will be owed. This is a good problem to have compared to not having a big next egg. I will play wait and see, if some new tax law comes to the rescue. Under the current tax rates, my RMDs would likely be taxed at 24 percent.
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