Can you use dividend distributions from an IRA to satisfy an RMD?

Is it acceptable to use dividend distributions from an IRA to satisfy an RMD?

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January 2017
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Yes you can.

Any distribution from an IRA account will count towards satisfying your annual Required Minimum Distribution, including dividends. Be sure to use this information from the IRS to calculate your annual RMD which considers your age and the prior year end (12/31) value of all applicable qualified retirement accounts.

If the total amount of dividend distributions you receive during the year does not surpass the total Required Minimum Distribution, you will need to withdraw additional funds from your qualified accounts to satisfy the requirement and avoid penalties.

Stephen Rischall, CRPC

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