Questions and Answers
One of our IRA owners also has IRAs elsewhere. He is turning age 70½ this year and will have to begin taking required minimum distributions (RMDs). How do we calculate the RMD since the IRAs are with different companies?
An IRA owner has a minimum distribution requirement for each traditional IRA he/she owns. Each IRA’s custodian/trustee should assist the IRA owner by calculating the RMD amount for that particular IRA. With that information in hand, an IRA owner may add together RMD amounts and withdraw the total amount from one or more IRAs through aggregation. IRA investments, their maturity dates, and financial organization fees or penalties may play a part in determining how an individual chooses to aggregate RMDs.
(Posted: 05/07/2008)
