{"id":4063,"date":"2023-12-07T04:30:53","date_gmt":"2023-12-07T04:30:53","guid":{"rendered":"https:\/\/www.ua-cpas.com\/blog\/?p=4063"},"modified":"2023-12-16T22:17:05","modified_gmt":"2023-12-16T22:17:05","slug":"need-to-take-an-rmd-in-2023perplexed","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2023\/12\/07\/need-to-take-an-rmd-in-2023perplexed\/","title":{"rendered":"Need to take an RMD in 2023\u2026Perplexed?"},"content":{"rendered":"<p><span style=\"color: #800080;\"><strong>When is your Required Beginning Date (RBD) to take the first RMD?<\/strong><\/span> \u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignright size-thumbnail wp-image-4066\" src=\"https:\/\/www.ua-cpas.com\/blog\/wp-content\/uploads\/2023\/12\/confused-for-RMD-blog-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" \/>Your first RMD\u00a0(required minimum distribution)\u00a0must have been taken by April 1 of the year following the year in which you reached 72 for those who reached age 72 by Dec. 31, 2022. The first RMD for those turning 72 after Dec. 31, 2022 must be taken by April 1 of the year following the year you turn 73. After that, your RMDs must be taken by Dec. 31 of each year.<\/p>\n<p><span style=\"color: #800080;\"><strong>Beneficiary of an IRA account?<\/strong><\/span> (Rules below apply to IRA owners who passed away after Jan. 1, 2020)<\/p>\n<p><span style=\"color: #800080;\"><strong>An individual non-spouse beneficiary<\/strong><\/span> must distribute the entire account balance by the 10<sup>th<\/sup> calendar year after the account owner\u2019s death. If the IRA owner reached his required beginning date, the beneficiary must take annual RMDs based generally on his own life expectancy. These RMDs must begin by December 31 of the year after the owner\u2019s death. Although the beneficiary must take annual RMDs, you will need to fully distribute the account within ten years from the owner\u2019s date of death.<\/p>\n<p>If the IRA owner passed away before the RBD, the RMDS are not required. However, the entire account balance must be distributed within ten years from the owner\u2019s date of death.<\/p>\n<p><strong><span style=\"color: #800080;\">The IRS is providing relief<\/span> <\/strong>to heirs of inherited IRAs who are subject to the 10-year rule, allowing them to skip required minimum distributions in 2023. However, there are reasons why one should take an RMD in 2023, although not required:<\/p>\n<ul>\n<li>If he has high medical expenses, the medical expenses will offset the RMD income eliminating the income tax on the RMD<\/li>\n<li>By taking an RMD in 2023, he will have a smaller balance to distribute in year ten, avoiding a bunched higher RMD at higher tax rates<\/li>\n<\/ul>\n<p><span style=\"color: #800080;\"><strong>If an estate is the beneficiary of an IRA<\/strong><\/span>, and the account owner reached his RBD, the estate must make distributions based on the remaining life expectancy of the IRA owner. If the IRA owner passed away before his RBD, the assets must be completely distributed within five years of the owner\u2019s passing, but no annual RMD is required.<\/p>\n<p><strong><span style=\"color: #800080;\">IRA owner passed away in 2023?<\/span> <\/strong>If the IRA owner passed away in 2023 prior to taking this year\u2019s RMD, the beneficiary, whether an individual or an estate must distribute the RMD by the end of 2023.<\/p>\n<p><span style=\"color: #800080;\"><strong>Want to save income taxes on the RMD? &#8211; Use a Qualified Charitable Distribution (QCD) in 2023 <\/strong><\/span>For IRA owners with charitable intentions, there is a substantial tax benefit using a QCD. The owner contributes all or part of his RMD to charity. The portion contributed to charity will not be taxed. QCDs can be made as early as age 70.5, even though minimum distributions are not required until age 73. A QCD may only be made by an original account owner, not by a beneficiary.<\/p>\n<p><span style=\"color: #800080;\"><strong>What happens if I don\u2019t take the RMD in 2023? <\/strong><\/span>If an account owner fails to withdraw an RMD, the amount not withdrawn is taxed at 25% (reduced from 50% for missed RMDs prior to Dec. 31, 2022).<\/p>\n<p><span style=\"color: #800080;\"><strong>Still confused? <\/strong><\/span>Everyone\u2019s situation is different. Please consult with a tax advisor at Urbach &amp; Avraham, CPAs, to analyze the impact on your personal situation.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When is your Required Beginning Date (RBD) to take the first RMD? \u00a0Your first RMD\u00a0(required minimum distribution)\u00a0must have been taken by April 1 of the year following the year in which you reached 72 for those who reached age 72 by Dec. 31, 2022. The first RMD for those turning 72 after Dec. 31, 2022 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4065,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,11,22],"tags":[244,262],"class_list":{"0":"post-4063","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-estate-trusts-guardianships","8":"category-income-taxes","9":"category-tax-tips-for-individuals","10":"tag-required-minimum-distributions","11":"tag-rmds","12":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=4063"}],"version-history":[{"count":7,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4063\/revisions"}],"predecessor-version":[{"id":4092,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4063\/revisions\/4092"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/4065"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=4063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=4063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=4063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}