2 elementary RMD questions:
1.) My client has several traditional IRAs. I think the total RMD amount he owes is based upon the total of all of his IRAs on Dec. 31 of the previous year. My question: Can he take the total amount owed to the IRS out of just one of the accounts, or is he obligated to take RMDs from each and every account?
2.) Is the IRS RMD table for 2008 the same as the one for 2007? Where can I find a 2008 table online?
Permalink Submitted by Alan Spross on Mon, 2008-10-13 20:55
RMDs from his owned IRAs can be aggregated as Tom indicated. However, when you indicated that the IRAs can be totalled up, that may not produce the right RMD in certain cases. Rather, you should take the individual RMDs for each IRA and then add up those RMD amounts unless you are totally sure that the divisor is identical for each IRA account. For example, if a sole beneficiary spouse more than 10 years younger than yourself was the beneficiary on one IRA and a child was shown along with that spouse on another account, the divisors would be different. After getting the correct total of all RMDs, that total can be taken from the account(s) in any combination desired.
Note: It is possible that Congress will provide some RMD relief this year due to the market meltdown. Keep monitoring those developments as they unwind.
Permalink Submitted by Janine Janine on Tue, 2008-10-14 18:19
I urge everyone to write their reprensentatives and congressmen regarding this issue!