RMD from transferred account

Submitted by Harold Leslie on Wed, 2016-11-16 02:02

In November 2016 I transferred my Fidelity IRA brokerage account into a Fidelity Mutual Fund IRA account. Only a couple of non-Fidelity funds remain in the original brokerage IRA account. The Dec 31, 2015 balance, therefore, has a different account number than the current Mutual Fund IRA account. I realize that the funds don’t all have to come from one account. However, since the new account with sufficient funds for the RMD has a different account number than the account that held the Dec 31, 2015 balance, does this present a problem &, if so, what can I do about it?

Thanks for your help.



Submitted by Alan - IRA critic on Wed, 2016-11-16 02:24

  • It is not a problem. You can take your RMD in any combination from both accounts or all from one of them. All the IRS cares about is that your 1099R reporting distributions is at least equal to your RMD calculated on the 12/31/2015 balance.
  • I thought Fidelity IRAs were all brokerage accounts. Since you can purchase any of their funds in the brokerage IRA, why did you create the second account? Does not affect the above answer, but was just curious.

Submitted by Harold Leslie on Wed, 2016-11-16 15:00

Thanks for your help, Alan.  Much appreciated.The reason for transferring my Fidelity brokerage IRA to a Mutual Fund IRA is because of the statements received resulting from my RMDs.  In the brokerage account, the information is virtuallly useless whereas in the mutual fund account, the statement provides a complete breakdown of the transaction.  I don’t know if other companies’ RMD statements differ from the ones that Fidelity provides.  By the way, I had to get special permission to do this since Fidelity prefers its customers to use brokerage accounts.

Submitted by Alan - IRA critic on Wed, 2016-11-16 16:50

Thanks. Seems like their statements should provide the same detail either way. Perhaps they will correct this at some point.

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