The law allows you to delay your RMD until April 1 following the year you reach age 70-1/2.
While this may sound like a good deal, most advisors do not recommend using this strategy.
Let’s say you reach 70-1/2 in 2015 and you delay the distribution until March 31, 2016. If you do that, you must also take your 2016 distribution in the same year. You can expect your first RMD to be about 4% of your prior December 31 account balance.
Why not employ this strategy? Well, two distributions in one year may put you in a higher tax bracket. Also, that extra income bump may raise that year’s income so that two years later you end up paying higher income-based premiums for Medicare Parts B and D.
Something to think about‼️
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