fwdude wrote: “Thanks for the correct answer. Others are all over the board.”
Thank you too. This is a good article. People should pay attention to the provisions of the law. I will be subject to the RMD provisions this year so I’ve spent some time studying.
Here’s something people should pay attention to. It is as important as the penalty. From the article: “If you turned 70½ in October 2016, for example, you’ll need to make that first withdrawal by April 1, 2017. But taking advantage of the grace period is not a recommended strategy, she said. You’d still need an RMD for 2017, and double withdrawals that year could have a significant tax impact.”
Some folks think, well, I don’t want to make a withdrawal so I’ll just take advantage of this. Fine, but do so and you’ll have to make a double withdrawal in the next year and that will increase your taxable income in that year.
I’m not a financial planner but I am retired so these things are important to me.
Not retirement age yet, but this issue was a bug in my ear for my mother, who is subject to the rule. Even though she employees the services of a retirement planner, I had her be sure that the RMD was being handled timely by the agent.