Author Topic: RMD question for two accounts from same company  (Read 1380 times)

CCCA

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RMD question for two accounts from same company
« on: October 29, 2015, 02:14:42 PM »
My mom turned 70.5 this year and needs to take her RMD from her workplace retirement account (TIAA-CREF).  She has two separate workplace accounts with TIAA.  Does anyone know if she is required to take the RMD from each account or if taking the correct amount out of one account based upon the account value of both accounts (1/27.4=3.65%) is okay?


example:
Acct1: 500,000
Acct2: 100,000
Does RMD require withdrawal of $18250 from account 1 and $3650 from account 2, or just $21,900 from either or both of the two accounts, again with the same company (TIAA-CREF)?
 

thanks, 
« Last Edit: October 29, 2015, 02:24:14 PM by CCCA »

AustinKat

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Re: RMD question for two accounts from same company
« Reply #1 on: October 29, 2015, 02:57:03 PM »
She should call TIAA-CREF and ask them to be sure, but I'd guess she'll have to take the RMD from each account. I inherited two IRAs from my mother, a traditional and a Roth, and I have to take beneficiary RMDs from both of them.

lhamo

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Re: RMD question for two accounts from same company
« Reply #2 on: October 29, 2015, 03:24:15 PM »
Vanguard says you can withdraw the entire amount from just one account:

"If you have more than one retirement plan, you'll need to calculate the RMD of each plan separately. However, you may add the RMD amounts of all IRAs (including traditional, rollover, SIMPLE, and SEP-IRAs) and withdraw the total amount from any one or more of your IRAs. The same rules apply to 403(b) accounts.

For example, assume that you have three IRAs. Your RMDs are $2,000 from the first IRA; $1,000 from the second IRA; and $1,000 from the third IRA. If you wish, you can take $4,000 from any one or more of your IRAs to satisfy your RMD for the year.

If you have accounts in several 401(k) or other employer-sponsored plans, the IRS generally requires you to calculate a separate RMD for each retirement plan in which you participate and withdraw the appropriate distribution from each plan."

They also have a tool for estimating the RMD amount:

https://personal.vanguard.com/us/insights/retirement/estimate-your-rmd-tool


CCCA

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Re: RMD question for two accounts from same company
« Reply #3 on: October 31, 2015, 12:42:57 AM »
thanks, just to be safe, I set up the withdrawal to come from each separate account.  It didn't really matter either way for her, so I just did what was safest. 


Anyway, it's easy (and fun) to help out my mom with these financial matters as she is in great shape financially, after a lifetime of mustachian living.  She has quite the retirement 'stache, but doesn't really need it because her SS covers all of her primary needs and then some.