All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Esteemed Pioneer
Posts: 13
Registered: ‎01-25-2015

Taking RMD when you have more than one Traditional IRA

You have Traditional IRA one and Traditional IRA two.  Let's say the entire RMD for the year is $600.  Can you take the entire $600 from IRA one, and take nothing from IRA two?  Or does IRS require that you take $300 from IRA one and another $300 from IRA two?

Tax Pro
Posts: 6,041
Registered: ‎02-23-2016

Re: Taking RMD when you have more than one Traditional IRA

Hi 2014TryingABC,

 

 

 

You can take your entire required minimum distribution from one IRA account instead of taking RMDs from each account individually.  It is allowed, but be sure that you withdraw full total amount that you're required to take from all accounts.

 

 

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

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Associate (Pioneer)
Posts: 61
Registered: ‎03-22-2016

Re: Taking RMD when you have more than one Traditional IRA

A comment about RMDs:

 

RMDs are also required from other employer-sponsored plans, such as SEPs, SIMPLE IRAs, 401(k), Roth 401(k), 403(b), and 457(b).  RMDs must be calculated separately for each type of plan, and withdrawals must come from the respective type of plan.  This means that a withdrawal from a traditional IRA, for example, cannot cover the RMD required from a 401(k) plan.  However, if a person owns multiple 401(k) plans, the RMD for can be withdrawn from just one of the person's 401(k) plan.

 

Hope this is useful for those fortunate enough to have multiple types of retirement accounts.

 

Simon Tung

(Tax Preparer)