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URL:  http://boards.fool.com/this-is-the-year-i-turn-70-12-and-i-know-i-have-30515213.aspx

Subject:  Re: RMD Question Date:  1/30/2013  11:40 AM
Author:  TMFPMarti Number:  18185 of 19221

This is the year I turn 70 1/2 and I know I have to start taking distributions.

As I have multiple IRA's my question is do I have to take distributions from each account or just the required amount in total from any of the accounts?


You calculate the RMD from each account separately. (If the calculation factor is the same for all of them you can just add 'em up and do one calculation.) However, you can take the total RMD from any one account or combination of accounts you choose. Also, unlike contributions withdrawals can be other than cash. For example, if you have a stock in your IRA that you like you can just move shares of that stock to your taxable account.

I also 'think' I have until Apr of next year to actually 'take' the distribution for this year. Is that correct?

You do, but think carefully about this. Here are your first two RMD's:

Between now and 4/1/2014 based on your 12/31/2012 balance and 12/31/2013 age.

Between 1/1/2014 and 12/31/2014 bsed on your 12/31/2013 balance and 12/31/2014 age.

If you take both in calendar 2014 this could have an unpleasant effect on the taxability of your SS benefit and the amount of your Medicare Part B premium in 2016.

Details are in IRS Publication 590.

Phil
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