|
George Bracey Gillow
An important point on RMD's (Required Minimum Distributions ) is that you must take out from EACH 401k every year.
However, as Bruce mentioned, you can take out of only one IRA or SEP/IRA as long as the total covers what is required for all IRAs.
So, for example, if you have five (5) IRAs each of $10,000 and the RMD is, say, $400 for each, then you can take out $2000 from one to cover all.
But if you have a number of 401ks you need to take out RMDs from every one.
Companies like Fidelity and Merrill Lynch Edge automatically calculate the RMDs and you can have them set up to automatically distribute to your bank checking or savings account yearly. (You cannot deposit into retirement accounts like IRAs or 401ks after you retire. Just into regular accounts.)
The IRS website has information on RMDs: https://www.irs.gov/ (search RMD)
Fidelity has an RMD calculator: https://web.fidelity.com/mrd/application/MRDCalculator
Also, as Bruce mentioned, you can wait until April 1st of the year after you turn 70 1/2 to take out the first RMD but you also must take the next years by December 31st.
For example if you turned 70 1/2 this year-- 2017-- and decided to wait until April next year to take out the RMD it would count as 2018 income, not 2017 income. Since you would, also, have to take out the RMD for 2018 by December 2018, you would have more income that would be taxed and your taxes would be higher in 2018, especially if it puts you in a higher income bracket.
|