Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
RMD take from any IRA?
Posted by: jannie, October 25, 2017 09:56PM
4 IRA's (3 traditional) 1 (403b)
Am I Correct: The IRS doesn't care from which IRA I take the RMD Or Qualified Charitable Distribution as long as: When the total of all the IRA's Traditional & other are added & the amount is calculated according to my age that amount is taken either as a RMD or QCD. I could take all from IRA #1 as a RMD or if it were a traditional IRA use all for a Qualified Charitable Distribution.
Do I have that correct?? Thanks

Re: RMD take from any IRA?
Posted by: Alan S., October 25, 2017 11:08PM
Yes, you can complete your IRA RMD in any combination from the IRA accounts. The 403b is separate.

Since the first distribution from ANY of these IRAs is considered RMD money, if you want your QCD applied against the taxable RMD, you should do the QCD first to be sure that your taxable RMD is reduced up to the amount of the QCD.

Re: RMD take from any IRA?
Posted by: jannie, October 25, 2017 11:30PM
What do you mean the 403b is separate - are you meaning I include it in the total to get the correct total retirement money - I just can't take it (the amount of RMD as a lump sum from that 403b because I have to take it (the money in the 403b as an annunity??

Re: RMD take from any IRA?
Posted by: Alan S., October 26, 2017 02:46AM
The RMD for the 403b must be satisfied separately from the RMD for the IRAs. Any QCD must be distributed only from one of the IRAs. You do not have 4 IRAs, you have 3 IRAs and one 403b.

If you are receiving life or joint life annuity payments from the 403b, those distributions will satisfy your 403b RMD.

I explained how the 3 IRA RMDs can be handled earlier, including a QCD. A QCD can be less than, equal to, or more than your IRA RMD, but cannot be more than 100k. But timing of the QCD is critical. Also, a QCD cannot be distributed before the actual day you reach 70.5.

Not sure if this answers your question. If not, perhaps indicating some details regarding the amounts of these accounts and the RMDs for them will allow me to be more specific.

Re: RMD take from any IRA?
Posted by: jannie, October 26, 2017 01:48PM
Ok, I am confused -- did you mean I can use only 1 traditional IRA to use as a QCD rather than all 3 traditional IRA's??? My amounts are way lower than the amount you mentioned.

I understand when the RMD has to be taken at 70.5 & the amount that's taken as a rMD Or QCD is calculated on how long you might live using the chart. I was going to figure QCD on traditional IRA #1 - to satisfy that IRA RMD (though in my case I want it to go directly to charity). I was going to do IRA #2 & 3 the same way each one of them calculated separately and the QCD (which would satisfy the RMD going directly to a charity.

The 403B (TIAA/CREF) - won't allow me to do a QCD, but part of this 403b is evidentally liquid (allows to take a lump sum so will use that portion to cover the RMD for the total amount) & part of this 403b is a plan where that money has to be taken as an annunity.

Re: RMD take from any IRA?
Posted by: jannie, October 26, 2017 02:03PM
Alan: Reread your earlier post - maybe I have this now - (and whether I could do it this way).
All the retirements (traditional IRA's & 403b) - added up to a figure that when calculated would show a RMD of $10,000 - now I want to have that money go to Charity XYZ - I could do a QCD to Charity XYZ from Traditional IRA #1 for $10,000 and that would satisfy my RMD for the year. Is that correct?

Or, will the IRS require that 403b which has a 5,000 RMD on its own to be taken out of that pot separately-

If so that would mean I would have a QCD from Traditional IRA 1 for $5000 and have to do a RMD from the 403b for $5000 the total is still the same just not able to give as much to charity.


Re: RMD take from any IRA?
Posted by: Alan S., October 26, 2017 05:03PM
Yes, your second paragraph. The 403b RMD of 5000 must be taken only from the 403b. You can take that RMD at anytime and it has no effect on your IRA RMD or QCDs.

The IRA situation is more complex. The first dollars you take out of ANY of these RMDs applies to the RMD amount for all of the 3 IRA accounts. In your example, if the 403b RMD was 5000, then the IRA RMDs would also be 5000 since you indicated a 10,000 total RMD for all 4 accounts.

Knowing that your IRA RMD is 5000 for all 3, the first 5000 you take out of ANY of the IRAs is considered RMD money. You can take that as a QCD from any of the IRAs and the charity gets 5000 and you are not taxed on any of the IRA RMD, just the 5000 from the 403b. If you wanted to break up the IRA 5000 RMD by account, you could also take a distribution from each of the 3 IRA accounts in the amount of the RMD for each account and do each of these as QCDs. Same total amounts, but 3 transactions and QCD checks instead of 1 transaction and 1 QCD check.

To further expand this explanation, if you wanted the charity to get 10,000, you could take a 10,000 distribution from your IRA and it would all be a QCD, your IRA RMD is completed and NONE of the 10,000 distribution is taxable to you. The downside of this for you is that your IRA account total would be reduced by 10,000 instead of 5000 and you would have 5000 less in your IRA going forward.

Finally, if you rolled the liquid portion of your 403b to your IRA, the RMD on that money would then be an IRA RMD later on eligible for QCD use.

Re: RMD take from any IRA?
Posted by: jannie, October 26, 2017 06:19PM
Got it -- thanks so much for clearing that up!!! I now have it in my head :)

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