Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
DW has 2 small Traditional IRA's with two different custodians. Given her age, she is taking Required Minimum Distributions(RMDs) that are processed in October. She wants to consolidate the IRA's via a custodian-to-custodian transfer to ease record keeping, reduce fees and simplify beneficiary consolidation.

Our feeling is that it should be done after the RMD's are received in Oct? Our question: Is this the best time to initiate this plan? Any advice or suggestions are appreciated. Thank you.
Print the post Back To Top
No. of Recommendations: 1
Our feeling is that it should be done after the RMD's are received in Oct? Our question: Is this the best time to initiate this plan?

No need to wait, nor any advantage. The onus for ensuring the RMD is taken from an IRA is with the owner, not the plan, so go ahead and move now. You just use the total value of both as of 12/31/2011 in calculating the 2012 RMD.

It sounds like maybe she's had these on auto pilot for RMD's. When you make the transfer, just advise the receiving custodian what 12/31/2011 balance to use. Or, skip the auto distribution for this year and figure it yourselves.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
Phil, thanks for your prompt and useful reply, as always.

She is "on-auto pilot" for her RMD's.
Print the post Back To Top