jkern
Full time employment: Posting here.
If a person has more than one retirement account, are RMD withdrawals made from each account or do you have a choice to take the full amount from just one of the accounts?
The accounts are an IRA and a QDRO 403b from a previous marriage. My friend wants to take RMDs from the IRA and not touch the QDRO.
Per the IRS web site:
An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.
However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.
QQ for those of you lucky enough to have reached 70.5. A point of curiosity.
When you do the interview with your tax software, does it figure your RMD for you (across multiple accounts or whatever complexities might be there)?
I did search on Turbotax and they just send you to the IRS site to figure it out, so no help there.Yeah, no place on the tax forms, but I just wondered if TurboTax (or whatever you use) would say "hey, I see your traditional IRA balance across all accounts is 'X' and you're 71 years old, here is what your RMD is".
Thinking more about it, this would be one of those things it would tell you in the "post filing help" section. It knows your traditional IRA balance (had to ask to see if you need to file the 8606). It knows your age. So it could/should advise you that in the upcoming tax year, you need to pull at least 'Y' to avoid getting hit by the RMD penalties. If they didn't drag you you through 10 minutes of personal background cr*p to start a new return, I could have just fired-up my copy Block Tax and experimented to get the answer. But I've got 13 years to figure it out, hehe! And by then the law will probably be different anyway.
For RMDs, inherited IRAs are separate from your own IRAs. This means, for example, you can't satisfy an inherited IRA RMD by withdrawing funds from your own IRA. Likewise a Roth IRA is separate from a traditional IRA for RMD purposes.