Separate RMDs from IRA and 40l(k)
You stated: “You can take your RMD from any one of your retirement accounts ….” But, that is not correct if one is an IRA and the other is a 401(k) account is it? Must take a 401(k) RMD from that account and NOT from the IRA. Correct? If so, you may want to correct your article or your readers could be in tax troubles if they followed your statement.
Terry Says
The IRS merely says that the total valuation of all retirement accounts must be combined to determine the RMD.
As a matter of practicality though, 40l(k) custodians typically require a separate withdrawal from a company-sponsored plan for an RMD based on plan assets.
By the time most people reach age 72, they are no longer working for the company and should have long ago rolled over their company plan into an IRA with wider choices of more conservative investments appropriate for retirees (as opposed to the more growth-oriented choices typically inside a 40l(k) plan to allow assets to grow).
That’s the main reason for doing a ROLLOVER IRA.
So, yes, if you’re still in a company plan they will most likely demand you take a direct RMD — based only on the plan assets they hold. Thus, if you also have IRAs, figure the remaining RMD on that money only from the total IRAs.
