Question

My mom is of RMD age (75) and opened a brand new SEP IRA in 3/2021 (for tax year 2020) so had $0 in it until 3/2021. Is she required to still take a 2021 RMD from it?

No text available

Of course not ... there was nothing in the SEP on 12/31/2020 so there is no RMD ... o% of zero is still zero. Confirm this with the SEP custodian.

Employee

The RMD is based on the year end value of the prior year.

Employee

If your mom already has other IRAs, the RMD will be required.

The contribution to a new or existing account in 2021 will have no effect.

The RMD can be taken out of any account or accounts you wish, including the new SEP.

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