On New Year's Eve I mentioned that anyone turning 65 on New Year's Day was getting a gift from the IRS since they could claim the larger standard deduction for 2013 even though their 65th birthday was in 2014. (If anyone doubts this, just look at the instructions for Form 1040 or Pub. 501)
This led me to wonder... What if your 70th birthday was July 1, 2013? Using the same logic (dangerous, I know) you would complete your 70 1/2 year on December 31, 2013 (or December 30 if you count 183 days) and would be required to take your first RMD in 2013. Has the IRS ever assessed a penalty for not taking the first RMD in a situation like this?
Fortunately, this is just a rhetorical question for my clients and me as none of us have a 7/1 birthday.
Ira Smilovitz