You must therefore figure out your RMD with these current-year recharacterizations and conversions.
Let's look at the following examples: Michael reached age 74 in 2013.
Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you.
Consolidating multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner.
Generally, retirement account owners who are at least age 70.5 must withdraw required minimum distributions (RMD) from their retirement accounts by Dec 31.
In the first RMD year, individuals may be able to defer the RMD to the next year until the required beginning date.
Few people miss this deadline on purpose, research shows.
RMDs simply ensure that the government collects its tax revenue on your retirement savings.
The payment reduction may come from a lower interest rate, a longer loan term or a combination of both.
By extending the loan term you may pay more in interest over the life of the loan.
(For more on how to calculate your RMD, see .) Your IRA custodian usually provides a report of your FMV by Jan 31 of the following year.
However, if in the current year you recharacterized a conversion for the previous year or rolled over a distribution from the previous year, your custodian may not be aware of these transactions and may not have included those amounts in your FMV.
Anyone who turned 70½ in 2016 and holds assets in a traditional IRA or (in most cases) a 401(k) plan must begin taking distributions.