Ask Terry Questions Required minimum withdrawls from IRa’s

Required minimum withdrawls from IRa’s

By Terry Savage on November 18, 2014 | Financial Planning / Retirement

Thank you for taking the time to answer my three questions on required minimum withdrawls from an IRA. If one has more than one IRA is the required withdrawl amount determined by the total dollars in all IRA’s or separately by each IRA. Once it is determined how much to withdrawl can one just move the money from the IRA to an account with the same institution that taxes are paid on each year. Final question, are taxes paid on withdrawn amount at the time of withdrawl or when one pays their taxes.

Terry Says:  Each year you total the value of ALL your IRA accounts to determine your required minimum withdrawal (RMD).  Any of your IRA custodians will do that math for you if you give them complete info about all your balances.  Then you can take the amount from one or more of your accounts.

I would suggest having the money sent to your  bank account so you clearly demonstrate the withdrawal. But you don’t have to spend the money!  If you don’t need it and want to reinvest it in a non-IRA account, that’s fine. Maybe I’m paranoid about this, but I would put it somewhere different, rather than opening a non-IRA account in the same fund!  I just don’t want the IRS to get confused!

Now, you will have to file quarterly estimated taxes if you aren’t doing so already. Talk with an accounting professional so you  make the correct  deposits.

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