If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you can add up the RMD amounts of all your IRAs, including any IRA backed by Gold, and withdraw the whole of an IRA or a portion of each of your IRAs. You don't need to take an RMD separately from each IRA. RMDs from non-Roth IRAs can all be grouped together. In other words, after calculating the RMD for each of your non-Roth IRAs (including traditional IRAs, cumulative IRAs, SEP IRAs and SIMPLE IRAs), you can add up all those RMDs and take that total RMD from any combination of those accounts.
If you have multiple IRAs, you must calculate each account individually, but you can deduct the total amount in RMD from an IRA or combination of IRAs. That legislation prohibited one of the most common maneuvers of this type, called requalification, namely, undoing a conversion from a traditional IRA to Roth and changing a Roth IRA to a traditional IRA to prevent converted funds from suffering a sudden heavy tax burden. IRA Taxpayers should be careful when reporting charitable IRA donations on their tax returns, or they may end up overpaying Uncle Sam. Roth IRA, minimum required distribution, tax planning, RMD, IRS, IRA, 401 (k), inherited IRA, Mailbag, Ed Slott, IRA contribution, retirement planning, IRA conversion, IRA renewal, qualified IRA distribution, IRA distribution, IRA beneficiary, Marvin Rotenberg, 60-day IRA renewal, 10 percent fine.
SEP IRAs are treated like traditional IRAs, and therefore, funds must be withdrawn from the SEP IRA starting at age 70 and a half, says Maura Cassidy, vice president of retirement at Fidelity Investments (opens in a new tab). I know that it's based on my life expectancy and on my IRA balance, and I've read that I need to combine my IRA balances. I know that if I have 2 traditional IRAs, I can calculate the RMD amount of each IRA and then I can take the total RMD out of one of those IRAs (instead of one RMD from each IRA). You're right to say that the RMD for each account should be calculated separately, but the total RMD of all IRAs (in your case, the SEP IRA and the traditional IRA) can be deducted from one (or more) of the IRA accounts.
You must calculate your RMD for each IRA separately, but you have the flexibility to deduct your full RMD amount from a single IRA or from a combination of IRAs. Nor are Roth IRAs included, since non-inherited Roth IRAs have no mandatory minimum distributions. To calculate your RMD, start by listing the fair market value of your IRAs as of December 31 of the previous year. The amount of your RMD is calculated by dividing the value of your traditional IRA by a life expectancy factor, as determined by the IRS.
The amount is determined based on the fair market value of your IRAs at the end of the previous year, taking into account your age and life expectancy.
