Multiple RMD’s
I have a client with a qualified plan and an IRA. She is over 70 1/2.
can i take the total RMD from either account or because one is a QP and the other an IRA, must i take one from each?
I have a client with a qualified plan and an IRA. She is over 70 1/2.
can i take the total RMD from either account or because one is a QP and the other an IRA, must i take one from each?
Permalink Submitted by Alan Spross on Fri, 2008-01-04 20:35
The correct RMD must be taken from each account in this situation. If client only had IRA accounts, the RMD could be aggregated among them, but a QRP must distribute it’s correct RMD separately.
If the QRP was rolled over to an IRA after first taking the current year’s RMD, the following year RMDs would be simplified.
Permalink Submitted by [email protected] on Fri, 2008-01-04 21:26
Thank you Alan,
that corresponds with one answer i received from my BD and is contrary to the one i got from the annuity company. I will proceed accordingly.
Regards,
Reed
Permalink Submitted by Al Fry on Fri, 2008-01-04 22:31
Apparently she is not sttill working at the employer with the QRP, correct?
Permalink Submitted by [email protected] on Sat, 2008-01-05 15:57
Alfry,
She is self employed and has her own PS plan that she is still contributing to.
The IRA is in a VA with living benefits so we do not want to roll that into the QP.
I thought she could take the total RMD from her QP but have found out that it needs to be done from each one.
Permalink Submitted by Alan Spross on Sat, 2008-01-05 18:31
Reed.
Just curious, but has the VA insuror indicated any increase to the FMV for RMD purposes, or do the added benefits fall under “de minimus”?
Permalink Submitted by [email protected] on Tue, 2008-01-08 20:19
Alan,
i do not know the answer but will find out and let you know.
Reed