Required minimum withdrawals
My wife has two IRA’s from which we have been tasking RMW. One account is her Betty own IRA the second account is an inherited IRA from her late mom. Both are with Vanguard. My question is can I take the total of the required minimum withdrawals (for both accounts) out of one account. I ask this because the regular IRA is very conservative (90/10) while the Inherited acct. is 100% stk.
Terry Says
Well, first of all. YOU can’t take ANY money out since there are HER IRAs! If you fell off the planet, she would need to know what to do with her own money!
Now, I assume she is over age 73. Different withdrawal rules apply to each of those accounts. Her own IRA withdrawals are made on a schedule based on her age. But depending on when she inherited the other IRA, the entire amount must be withdrawn within 10 years. And if her mother had started taking withdrawals before her death, different rules apply.
I suggest she contact the IRA custodian and ask for advice on her own RMD — and on the rules and amounts for each account.
One more thing, though you didn’t ask: If she is at the RMD stage, why on earth would she keep the inherited IRA in 100% stocks. She’s been lucky so far, with two great years of stock market performance. Do you want to bet on a third?? This might be the time to move half that inherited IRA money into a MM fund with the custodian.
