By Terry Savage on December 16, 2014 | Financial Planning / Retirement

I turned 70 this year and have to make my RMD from my 401Kby December. I know I can defer the first one until April 2015. My question is how will my 2015 RMD be calculated. Do I subtract the April withdrawal from the Dec.31, 2014 balance to determine the amount?

Terry Says:  Please read the column currently posted at www.terrysavage.com about RMDs.  First, note that you do not have to take the first distribution until the year AFTER you reach age 70-1/2.  Strange, but if you turned 70-1/2 this year, then you have to make the distribution this year.  If not, you can wait until next year!!   The RMD is based on the balances in ALL  your qualified accounts as of Dec 31st, the previous year.  So if you decide to take TWO distributions in one year (by waiting until the year AFTER you reach age 70-1/2) then both distributions will be based on the balance in your account the previous year end, notwithstanding the fact that you take the first one in April, and the second one in December.

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