How are RMD's handled if you have more than one IRA account?

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cjcerny
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Joined: Sat Sep 15, 2007 12:47 pm

How are RMD's handled if you have more than one IRA account?

Post by cjcerny » Fri Oct 12, 2018 7:13 am

Are RMD's required for each IRA account that you have when you have more than one or is the IRS happy as long as the total $ amount you withdraw from a combination of all those accounts is greater than or equal to the total RMD you owe each year?

mouses
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Joined: Sat Oct 24, 2015 12:24 am

Re: How are RMD's handled if you have more than one IRA account?

Post by mouses » Fri Oct 12, 2018 7:37 am

As log as you take the total amount required, you can take it out of any subset of the accounts. I have my traditional IRAs in CDs and I always take it out of my lowest interest rate CD.

tomd37
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Location: Middle Tennessee

Re: How are RMD's handled if you have more than one IRA account?

Post by tomd37 » Fri Oct 12, 2018 7:55 am

Not the question asked, but just for additional info to readers, don't forget that RMDs from a 401k or similar program are calculated and must be disbursed separately from traditional IRAs.
Tom D.

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Artsdoctor
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Re: How are RMD's handled if you have more than one IRA account?

Post by Artsdoctor » Fri Oct 12, 2018 5:05 pm

Great question and the answer is not intuitive.

The correct way to calculate this is to figure the RMD from each separate tax-deferred account. Then, you add up those RMDs required for your IRAs, SEP-IRAs, SIMPLEs; you can take that total amount from any of those accounts. Then, you look at the total of the 403's alone; you can take that total from any one of your 403's. Finally, the 401k and 457b plans are all treated separately and your RMDs must be taken from each of those accounts separately.

At the end of the day, your plan will give you the figures, but it's ultimately your responsibility to make sure that the totals are correct.

The IRS publication will help:

https://www.irs.gov/retirement-plans/re ... tributions

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