When is the proper time to take first RMD?
A: You're OK. As long as you turn 70 1/2 in 2016, any distribution taken from a traditional IRA or 401(k) in 2016 will be considered part of your required minimum distribution for the year. You don't need to wait until you actually turn 70 1/2, says Dan Funk, a certified financial planner with T. Rowe Price.
If you were born between January 1 and June 30, 1946, you can take your first RMD anytime during 2016. Or you can take advantage of a one-time extension, to April 1, 2017, to take your first required distribution (you'll also need to take your second distribution, for age 71, by December 31, 2017).
People who were born between July 1 and December 31, 2016, don't need to do anything yet; because they turn 70½ next year, they can take their first distribution anytime in 2017 or delay their first distribution until April 1, 2018 (but they must also take their second distribution by December 31, 2018).
Keep in mind that taking two RMDs in one year will increase your adjusted gross income and could boost some of your income into a higher tax bracket. Having the extra income in one year could also affect the portion of your Social Security benefits that is taxable or trigger the Medicare high-income surcharge for your Part B and Part D premiums.
One way to avoid boosting your adjusted gross income is to give your RMD to charity. But unlike the regular RMD rules, you have to wait until you turn age 70 1/2 to make a qualified charitable distribution. See IRS Publication 590-B, Individual Retirement Arrangements, for more information about the RMD calculations.