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February 1, 2022
Question

Tax Due on RMD

  • February 1, 2022
  • 1 reply
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I am 75 and as of May 2021 I was still working full time with a company 401K. At the same time I had another retirement account which I had been regularly getting an RMD and calculating that for tax purposes. 

In January of 2021 I  took out my RMD (for 2021) from the retirement account (including a 10% withholding)

I retired in June of 2021and closed out the 401K account and transferred the total balance over into the original retirement account, this doubled the total Retirement accounts balance.

I received a 1099-R with box 7 as G (Total Rollover)

Before the 401K closed out I took an amount from the account to cover any RMD????? (-10%)

Am I due any more required RMD for 2021?  As the amount I took from the Retirement account in Jan was for the balance as of Dec 2020. 

    1 reply

    February 1, 2022

    If you took out the balance of your retirement account then no more RMD is required.

     

    As for your 401(k), RMDs are only required starting in 2022 as you retired in 2021.

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