Ask Terry Questions Consolidated RMDs from IRAs

Consolidated RMDs from IRAs

By Terry Savage on January 24, 2024 | Financial Planning / Retirement

My wife turns 73 in August, 2024. She has traditional IRA CD’s at two different banks on which I am sole beneficiary. I will turn 72 in March, 2024. Two questions:

(1) Let’s say the total value of all the IRA CD’s between the two institutions is $140,000. I believe her RMD for 2024 is $140,000 / 26.5, her life expectancy from the IRS Uniform Lifetime Table, or $5,283. Correct?

(2) Let’s say that the $140,000 is evenly split in CD’s at the two institutions ($70,000 each). Because of staggered CD maturity dates, I’d like to take the $5,283 RMD from one institution and leave alone the CD’s at the other institution. Is this permissible, and do I have to let the institution where I am NOT withdrawing any funds of my withdrawal from the other one, such that they know an RMD was taken for the year?

Terry Says

You’ll have to use a calculator to determine the exact amount of her RMD, based on the total balance in all her accounts. Here’s a link to a good one:
Her 2024 RMD will be based on the total value of all her IRAs at the end of 2023 (the December statements you just received.)

You can take the required total from any one account. The other account will send you a reminder, but you can ignore it as long as you take the required amount from the other account.

And, now may I ask YOU a question? Your post is all about YOU — as in You are with drawing fund, and You letting the other institution know what you’re doing. And IRA is just that — an INDIVIDUAL retirement account. It is HERS!!! SHE should be doing this for HER accounts, not YOU!!!

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