When is my first RMD distribution from traditional IRA taxed - 2024 or 2025 tax year?

Thanks for the clear explanation. I'm in a similar situation but I'm not sure if this changes things: if someone takes their first RMD in January 2025 but calls it their "2024 RMD," could they somehow designate it for the previous tax year like you can do with IRA contributions sometimes?

No, you cannot designate an RMD for a different tax year like you can with IRA contributions. The tax treatment is strictly based on when you receive the distribution. Distribution timing and tax treatment are completely separate from the RMD calculation year - the money is taxed in the calendar year it comes out of the account, period. The IRS gives flexibility on when to take that first RMD (by April 15 of the following year), but there's no flexibility on when it's taxed.

Does it work with any kind of tax document? I have questions about my 1099-MISC that H&R Block couldn't even figure out.

Sounds interesting but how accurate is it compared to a real CPA? I've been burned by tax software giving me wrong answers about my rental property depreciation before.

Yes, it works with practically any tax document - 1099s, W-2s, K-1s, and even IRA/401k statements. I've used it to decipher some weird 1099-MISC entries that had confusing box allocations. It's surprisingly accurate - it's not just giving generic advice like those chatbots. It actually analyzes your specific documents and explains how tax rules apply to your situation. I've double-checked some of its advice with my accountant and she was impressed with the accuracy. It's not meant to replace a CPA for complex situations, but for understanding documents and getting quick explanations, it's incredibly helpful.

Wait, how does this even work? Why would the IRS pick up for them but not for me directly? Sounds fishy.

Yeah right. Nothing gets you through to the IRS faster. I've tried everything and ended up just guessing on my taxes last year because I could never get through about my inherited IRA RMD questions. I'll believe it when I see it.

They use a system that can navigate the IRS phone tree and stay on hold so you don't have to. The IRS doesn't give them special treatment - they're just waiting on hold in your place using technology. When they reach a live agent, they connect that call to your phone. I was super skeptical too! But I was desperate after waiting on hold for over 3 hours one day and getting disconnected. With Claimyr, I just entered my phone number, told them what department I needed, and went about my day. About 40 minutes later, my phone rang and it was them with an IRS agent already on the line. They don't answer tax questions themselves - they just handle the waiting part so you don't have to sit there listening to that awful hold music.

Thanks for bringing this up. I actually have been confused about which table to use. My birthday is in August, so I guess that would be the second half of the year? Do you know which specific IRS table I should be looking at for this calculation?

Since your birthday is in August (second half of the year), you would use the Uniform Lifetime Table for calculating your RMD. The IRS updated these tables in 2022 to reflect longer life expectancies, which actually gives you slightly smaller required distributions. Just take your IRA balance as of December 31, 2023, and divide by the factor that corresponds with your age in 2024. For example, if you turned 73 in 2024 (which is now the RMD starting age for many people), your factor would be 26.5, meaning you divide your balance by 26.5 to get your RMD amount.

The same basic rules apply to 401ks - distributions are taxed in the calendar year received. However, there's one important difference with 401ks: if you're still working at the company where you have the 401k, you might be able to delay RMDs from that specific 401k until you retire (doesn't apply to IRAs or old 401ks from previous employers). This is called the "still working exception.