No. of Recommendations: 1
To not take mandatory distributions can get one in a pile of hot water with the IRS in a hurry, with penalties. It would be difficult for a financial insitution to know what else one has; for the purpose of mandatory distributions all IRAs are lumped together. You don't have to take a distribution from every account. If you have five IRAs, you can choose to take the whole mandatory distribution from one of them, nothing from the others. How would the trustee know, unless your Financial Advisor (broker) is on the ball and asks?
Each IRA reports to the IRS the balance of the account at the end of the year. The mandatory distribution is calculated on the basis of these totals. Time to go back to the figures and take those distributions, because the penalties are mounting. He'll probably owe the IRS more than the distribution.
I wouldn't put % of desirable assets in stocks, so much as enough of a $ amount to generate the needed income for expenses. It sounds like he doesn't have enough and needs more income from his investments.
Best wishes, Chris
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