Taking RMD from IRA vs. 401(k) while still employed
I have a client who currently is still working and has a 401(k) at TIAA CREF as well as an IRA annuity that he holds outside work
Since he is still working TIAA does not require and RMD but his annuity does. His question was can he take the required RMD from the annuity from his TIAA account? Or because the TIAA is exempt from RMD is that not an acceptable source to draw from?
Permalink Submitted by Alan - IRA critic on Tue, 2022-06-14 23:52
An IRA RMD can never be satisfied by a distribution from a qualified plan. If client had a non annuity IRA in addition to the IRA annuity, he could satisfy the total IRA RMD from any combination of those two accounts, as they are both IRAs. If the 401k had an RMD, it would have to be satisfied from that particular 401k only. Client will have to take the IRA RMD from the IRA annuity unless he owns other IRA accounts.