When I am 70-1/2, where will the RMD amount be taken from?

I have several IRA's--traditional and SEP. I have not rolled over older, smaller account balances into the largest one.

Retirement, IRAs
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August 2016

The IRS requires the amount you take out for RMDs, not specifically which account they are taken from. To make this a simpler process you might want to consider consolidating some of the accounts into lesser accounts. This would provide less things to keep track of and less opportunity to miss an RMD and get hit with an IRS penalty.

Before you consolidate the accounts make sure you are aware of any cost of fees to move the accounts, and look for a company that will help you calculate the RMD amounts for you. Many companies will also allow you to set up automatic RMD withdrawal from your account, so you don’t have to spend much time thinking about it or trying to calculate the correct amounts yourself.

For more specifics consult with your financial adviser and tax professional. For some tips to make good use of your RMD check out the full article "RMD Tips : Maximize your Retirement Savings"

Hope this helps,

By David Rae, Certified Financial Planner™, Accredited Investment Fiduciary™


Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA, SIPC, a Registered Investment Advisor. Trilogy Capital Trilogy Financial and NPC are separate and unrelated entities.  The opinions voiced in this article are for general information only and do not constitute an endorsement by NPC. NPC does not provide tax advice. Financial Planner LA Blog 

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