13 Nov I just turned 70. How will this IRA distribution count?

Q. I turned 70 in October 2019. Can I take my first distribution this year? Will it count as the first Required Minimum Distribution (RMD)?
— Retired

A. Happy birthday!

You’re asking about the often-confusing rules about when you have to take your first Required Minimum Distribution.

You can take a distribution from your IRA and/or qualified account anytime in any amount you like, without penalty, after you reach age of 59 ½, said Steven Gallo, a certified public accountant and personal financial specialist with U.S. Financial Services in Fairfield.

The only time RMD rules come into play is when you reach the age of 70 ½, which for you will be in 2020.

“The rules state that any individual with qualified accounts must take their RMD distributions in the tax year following the year in which they attained the age of 70 ½,” Gallo said. “However, if they choose to wait until the year following reaching the age of 70 1/2, they will need to take two distributions in that tax year.”

Therefore, Gallo said, you can take a distribution this year but it will not relieve you from the RMD rules that will come into effect for you next year when you reach age 70 ½.

He said you should remember the RMD is an amount calculated by an IRS formula which results in the minimum amount a taxpayer must withdraw, Gallo said. You can always take more, but not less without incurring a penalty, which is equivalent to 50 percent of the amount taken below your RMD amount.

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This story was originally published on Nov. 13, 2019.

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