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  • Mixture of 3 kinds of IRAs

    From Fred J. Tydeman@21:1/5 to All on Thu Aug 25 10:15:57 2022
    I have
    a regular IRA
    a SEP IRA
    an inheritied IRA from my mother
    Next year I have to take my first RMD(s).
    Can I add the year end value of all 3 kinds to determine the total RMD amount and then take that money from my choice of IRA?

    I know that my 401(k) stands alone for its RMD.
    ---
    Fred J. Tydeman Tydeman Consulting
    tydeman@tybor.com Testing, numerics, programming
    +1 (702) 608-6093 Vice-chair of PL22.11 (ANSI "C")
    Sample C99+FPCE tests: http://www.tybor.com
    Savers sleep well, investors eat well, spenders work forever.

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  • From Tempuser@21:1/5 to Fred J. Tydeman on Thu Aug 25 12:38:09 2022
    On 8/25/22 7:15 AM, Fred J. Tydeman wrote:

    I have
    a regular IRA
    a SEP IRA
    an inheritied IRA from my mother
    Next year I have to take my first RMD(s).
    Can I add the year end value of all 3 kinds to determine the total RMD amount and then take that money from my choice of IRA?

    I know that my 401(k) stands alone for its RMD.
    ---
    Fred J. Tydeman Tydeman Consulting
    tydeman@tybor.com Testing, numerics, programming
    +1 (702) 608-6093 Vice-chair of PL22.11 (ANSI "C")
    Sample C99+FPCE tests: http://www.tybor.com
    Savers sleep well, investors eat well, spenders work forever.

    No you can not add the year-end balances of all 3. Inherited IRAs stand
    by themselves. You must compute the RMD for the inherited IRA
    separately and you must take the distribution from the inherited IRA.
    You can aggregate SEP and the traditional IRA to obtain the RMD. You can
    take the RMD from either one or both of them.

    --
    Alan

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From John Levine@21:1/5 to All on Fri Aug 26 10:44:51 2022
    According to Fred J. Tydeman <tydeman@tybor.com>:

    I have
    a regular IRA
    a SEP IRA
    an inheritied IRA from my mother
    Next year I have to take my first RMD(s).

    For inherited IRAs, in most cases you have to start taking RMDs
    shortly after you inherit, regardless of how old you are, and you may
    have as little as 5 years to withdraw everything.

    The specific rules deoend whether she died before or after 1 Jan 2020.
    Either way I'd suggest checking the rules and how far behind you might
    be.

    https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
    --
    Regards,
    John Levine, johnl@taugh.com, Primary Perpetrator of "The Internet for Dummies",
    Please consider the environment before reading this e-mail. https://jl.ly

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From Roger Fitzsimmons@21:1/5 to All on Fri Aug 26 10:44:33 2022
    Note that inherited IRAs use a different RMD table than your own IRAs, and that the distrubution rules for inherited IRAs depend on the year of death and possibly also whether the decedent was taking RMDs prior to death. Also, if you have an inherited
    Roth IRA, it has RMDs, unlike a self-owned Roth IRA.

    You sound like you're already at least 70ish, so the next hack won't work for you, but I told my brother to increase his and his wife's 401(k) contributions and backfill the money by taking greater-than-required distributions from my Dad's traditional
    IRA that he inherited. While my dad died in 2018 and therefore he's still eligible for "stretch" IRA's, it will give him an even greater stretch. (It didn't apply to me because I got the house and therefore much less of the IRA's.) Part of the idea is
    to give him greater flexibility when his son applies to college. (He was 48 when his son was born.)

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    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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