Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
RMDs from Non-Prototype account
Posted by: CaptHaddock, November 9, 2017 01:55AM
My self-employed friend has a Non-Prototype retirement account as well as some TIRA accounts. Next year she will have to begin her RMDs. She has been told by the accountant who setup the Non-Proto account that it should be treated the same as IRAs for the purposes of calculating RMDs. Is this the case?

Also, if true, would that mean that the Non-Proto account could be pooled with the IRAs so that the distribution could be taken from any combination of IRA and Non-Proto accounts?

Re: RMDs from Non-Prototype account
Posted by: Alan S., November 11, 2017 07:49PM
It is not clear exactly what the accountant meant. I would be very hesitant to aggregate RMDs between non prototype plans and even more hesitant to include any IRA accounts in the mix. Was not able to find any specific information on this issue.

Re: RMDs from Non-Prototype account
Posted by: CaptHaddock, November 11, 2017 10:15PM
The accountant meant that the same formula is used to calculate the RMD from the Non-Prototype account as from the TIRAs. Is this correct?

Re: RMDs from Non-Prototype account
Posted by: Alan S., November 12, 2017 10:08PM
Same tables and rules would apply. Since self employed RMDs would have to start at 70.5 even though still working.

I know little about non prototype plans. Apparently some of them are just accounts that allow investments from a different provider to be added to an existing plan. Probably more likely an employer plan rather than an IRA.

I have never heard that non prototype plans provide a way to reduce RMD requirements.



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