Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
TIRA withdraw prior to taking the RMD
Posted by: BruceM, May 7, 2017 03:27AM
We know that for an RMD year, the RMD must come out before the TIRA owner may do an indirect rollover, a Roth conversion or any other elective withdrawal. But what about the following movement of dollars out of the TIRA...may these be done before the RMD is taken out?

1. Direct (agent-to-agent) transfers to another TIRA or retirement plan
2. Transfers to former spouse by divorce decree
3. Settlement of a court judgement
4. Payment of tax due on form 990T for UBTI > $1,000
5. Payment to advisor
6. Recharacterizing a contribution

Thanks

BruceM

Re: TIRA withdraw prior to taking the RMD
Posted by: Alan S., May 7, 2017 05:52PM
Hello, Bruce. The following can be done prior to the RMD:

1) TIRA to TIRA transfer, but not a direct rollover to a non IRA plan as these are treated as a distribution and rollover even when done by direct rollover.
2) Transfer incident to divorce can be done as non reportable direct transfer.
3) Same as 2), otherwise not as would be a distribution.
4) Yes. Should not generate a 1099R.
5) Yes. Should not generate a 1099R.
6) Yes. Generates a 1099R, but is a considered a transfer, not a distribution.

A return of regular contribution with earnings or the return of an excess contribution without earnings after the due date can both be done, and these amounts do not count toward the RMD.

Re: TIRA withdraw prior to taking the RMD
Posted by: BruceM, May 8, 2017 02:34PM
Thanks again, Alan, for helping with IRA information I couldn't find elsewhere.

BruceM



Sorry, only registered users may post in this forum.