Personal Finance (Not Investing) • RMD withdrawal mechanics

Hi all,

I'm preparing for 2025, next year, which will be my maiden RMD year. I have about 80% of my tax-deferred IRA accounts at one institution and the balance in a 401(k) with a prior employer.

After scrutinizing IRS pub 590-B without success, I put this question to Copilot: "For a person with one IRA and one 401(k), can he/she withdraw the RMD from the IRA only?"

I received this answer: "Yes, a person with both an IRA and a 401(k) can choose to withdraw the Required Minimum Distribution (RMD) from the IRA only. However, it’s essential to meet the total RMD requirement across all retirement accounts. If the IRA RMD covers the entire amount, there’s no obligation to withdraw from the 401(k)."

Questions: 1. Is this accurate? I seem to recall reading that RMDs from a 401(k) are mandatory, even if there's a separate IRA.

2. I also recall that in the instance (not applicable to me) of multiple IRAs, one RMD of the proper amount will suffice. Is this true?

Thanks in advance for your advice!

Statistics: Posted by Jagger — Thu May 16, 2024 12:27 pm — Replies 7 — Views 332

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