Ask Terry Questions IRA/RMD –when and how do I start?

IRA/RMD –when and how do I start?

By Terry Savage on November 24, 2014 | Financial Planning / Retirement

My traditional IRA matures in may every year. in may 2015 i will be 70 years & 4 months old. I know I must begin yearly RMD when I reach 70 1/2 which is august 2015 but how can i withdraw RMD from account at bank if I am only allowed to withdraw in may of each years? thanks

Terry Says:  Oh no, you have it wrong.  You just must withdraw the appropriate amount at any time during the year, starting with the year in which you reach age 70-1/2.   Tell the bank  how much you have in your IRAs (all of them, including any not at the bank) and they will calculate the appropriate amount based on the value at the end of the previous year.  You can take the money out of one or more IRAs, and at any time during the year (even on a monthly schedule) — as long as you take the correct amount each year.  Here’s a link to some great information on the subject, at the Fidelity website:



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