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RMD question
Old 06-14-2017, 07:47 AM   #1
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RMD question

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?
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Old 06-14-2017, 07:50 AM   #2
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It depends on the retirement account. I've heard from my sister, if it's 401k, withdrawal is made equality, that's why she made some transfers to IRA. IRA is different, you can pick and choose.
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Old 06-14-2017, 07:50 AM   #3
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My understanding is that the IRS looks tIRAs collectively as if they were on account so it doesn't matter... but, the onus is then on you to demonstrate that is was done correctly. I think it is easier to just consolidate such accounts... my Mom's is and Vanguard handles it all for her.
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Old 06-14-2017, 07:52 AM   #4
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Depends of type of account: for IRAs and ,I believe, 403Bs you can aggregate and take RMDs from just one account if you wish. For 401Ks, no aggregation and you have to take from each one.......which makes it easier for the custodians to have default RMDs if you don't take them.
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Old 06-14-2017, 08:25 AM   #5
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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.
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Old 06-14-2017, 08:47 AM   #6
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403b works similarly to 401k.
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Old 06-14-2017, 08:49 AM   #7
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Just Google RMDs to be certain, but that's what I recall from my research late last year (already took my RMD this year from my only 401(k).) Each 401(k) must be handled separately, but tIRAs can be paid from one or a combo as long as you get the numbers right. You DO NOT want to get this wrong as the penalties can be draconian.

I was so concerned about having to deal with this issue that I converted my last tIRA to a Roth last year before I turned 70. Of course there were other reasons, but a big "selling" point to myself was that I'd have only one investment (my 401(k)) to keep track of. It turns out the 401(k) admin is very efficient in letting me know what I will owe and when. Just to be certain, heh, heh, I took a little MORE than the admin said I owed. Belt and suspenders, yep, uh huh, belt and suspenders. YMMV
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Old 06-14-2017, 08:51 AM   #8
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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.
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Old 06-14-2017, 09:24 AM   #9
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Originally Posted by jkern View Post
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.
You can aggregate among IRAs. You can also aggregate among 403Bs.
But you can't aggregate and combine IRAs and 403Bs so withdrawals need to be taken from the 403B also.
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Is HSA considered part of RMD?
Old 06-14-2017, 12:05 PM   #10
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Is HSA considered part of RMD?

Is HSA considered part of RMD or not?
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Old 06-14-2017, 12:13 PM   #11
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No, HSAs are not associated with RMD requirements.
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Old 06-14-2017, 12:15 PM   #12
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Originally Posted by jarts98 View Post
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.
Thanks i have those last 2.
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Old 06-14-2017, 12:21 PM   #13
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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)?
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Old 06-14-2017, 01:05 PM   #14
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I don't believe there is any place on the tax forms to indicate whether a distribution was a RMD or not. You just have to calculate it and make sure you take it. If not, the IRS will tell you about it, probably in a rude manner.
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Old 06-15-2017, 08:39 AM   #15
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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.
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Old 06-15-2017, 10:49 AM   #16
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Quote:
Originally Posted by sengsational View Post
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 am certainly not >70.5, but do have a small inherited IRA that I have to take RMD's from, and use TurboTax. Not able to answer your question directly, but on the 1099-R form it has a box checked that the money (and any withholding if done) is from an IRA. TurboTax recognizes the money as being from the IRA, but it does not have any ability to know what the RMD amount should be that I am aware of.
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Old 06-15-2017, 10:55 AM   #17
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Quote:
Originally Posted by sengsational View Post
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.
I did search on Turbotax and they just send you to the IRS site to figure it out, so no help there.

But I think I've seen calculators on various brokerage web sites.
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Old 06-15-2017, 11:27 AM   #18
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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.
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Old 06-15-2017, 12:10 PM   #19
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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.
Roth balances are irrelevant. I suspect you meant to say 401(k) balances and the like.
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