Required Annunal Retirement Distributions

[Terry D EA]

Sorry I don't have time to research this topic and I certainly appreciate all you guys that can help on the fly. My aunt has two or three IRA's. She is 83 years old. Is the required distribution taken on each individual IRA? I would think so but am not sure. Thanks!

[Kea]

You have to use the grand total to figure the required distribution. But you can take it out any or all of them.

[Jack from Ohio]

Agree completely with Kea

[OldJack]

Agree with Kea and Jack from Ohio, but would suggest you take the appropriate distribution from each IRA account (if possible) for clear record of each account requirement. This especially if an account has non-taxable basis.

[MAMalody]

While I don't disagree with the above, I always thought you had to make the computations on each individual account, but, could take the total distribution out of one if you did not want to take it out of each account it was computed against. It this another senior moment?

[Diane]

You add up the value of each IRA as of December 31, 2009. You calculate using the percentages given by IRS. You can take the total out of one, or any of the accounts, as long as the correct amount is withdrawn.

Diane

[Gail in Virginia]

You may want to make the computation on each individual account if you have more than one beneficiary designated, and on at least one of the accounts the beneficiary is your spouse who is at least 10 years younger than you. Otherwise, I don't think it matters whether you figure the distribution for each account, and add them together or add up the accounts and then figure the distribution. At least that is the way I remember it.

[Terry D EA]

You guys are the greatest! Thanks for all of the responses. I thought individually would be the best. However, I didn't think of the beneficiary issue. If the same beneficiary is on all of the IRAs, then I see no problem with doing the calculation on the total amount with receiving the distribution from one IRA. If there are different beneficiaries, then I see a problem and will recommend the required percentage from each IRA. Thanks again!

[OldJack]

Well... a beneficiary has no vested interest in an account until the owner dies so the distribution could be from any account. However, if it is a required minimum distribution after death it has to be separate calculation and paid from each beneficiary account.

[Gail in Virginia]

The beneficiary has no vested interest but I believe that if the bene is a spouse who is more than 10 years younger, the IRS allows using both life expectancies in the calculation of the RMD. Otherwise, the bene is immaterial. However, my off the cuff statements are no substitute for actually looking up the information.

[Pacun]

The beneficiary has no vested interest but I believe that if the bene is a spouse who is more than 10 years younger, the IRS allows using both life expectancies in the calculation of the RMD. Otherwise, the bene is immaterial. However, my off the cuff statements are no substitute for actually looking up the information.

If the beneficiary of one of the IRAs is her nephew, Terry D, do not take out the money from that IRA! Use the global amount from all IRAs and take it from the other IRAs. Agree?