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Should IRA withdrawal be before Jan 1 2016 to be considered in 2015 or I can withdraw upto Apr 15th 2016 and still put them on 2015 tax form?

Forum|Forum|6 years ago
May 31, 2019
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Best answer by SweetieJean

While an IRA contribution can be made until the April tax filing deadline, a distribution/withdrawal must be made by December 31 to be reported on your 2015 tax return.

Your first RMD must be taken by April 1 of the year after you turn 70½. Subsequent RMDs must be taken by December 31 of each year. So, if you turned age 70.5 in 2015, you can wait until April 1, 2016 to take that first RMD. However, you will also have to take your 2016 RMD in 2016. so there will be two of them that year.

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SweetieJeanAnswer

While an IRA contribution can be made until the April tax filing deadline, a distribution/withdrawal must be made by December 31 to be reported on your 2015 tax return.

Your first RMD must be taken by April 1 of the year after you turn 70½. Subsequent RMDs must be taken by December 31 of each year. So, if you turned age 70.5 in 2015, you can wait until April 1, 2016 to take that first RMD. However, you will also have to take your 2016 RMD in 2016. so there will be two of them that year.

macuser_22

But don't wait until Dec. 31 to take the distribution. Most (maybe all) financial institutions take 1-3 days to post the transaction and that does not include weekends. A distribution taken on Dec. 31 might not be posted until Jan 4. 2016 and that is the date that will appear on the data the financial institution sends to the IRS. You will find that in the fine print of the financial institutions terms that you are given when you opened the account. Always allow several days for processing and posting.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**