Thursday, February 5, 2009

IRA - Required Minimum Distribution

Don't assume that your IRA custodian will automatically mail you a check for the required minimum withdrawal if you are over the age of 70½. Since you could have several IRAs, the custodian is not the one to make the decision as to where to withdraw the required amount.

The custodian may indicate how much you should withdraw on the assumption that you only have one IRA, but the custodian will NOT automatically send the check unless you have made some sort of arrangement for the custodian to do so.

Also, if your spouse draws more than the required amount, you still must withdraw your required minimum distribution.

If you have more than one IRA, you can withdraw the required amount from any one IRA or combination. For example, if you have three $ 50000 IRAs and you are required to withdraw 5%, you can take $ 7500 from one of them and nothing from the others, or you could take $3750 out of two of them and nothing from the third one.

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