ljwalters Posted April 4, 2011 Report Share Posted April 4, 2011 Client came in as asked me about the mandatory distribution he needs to take in 2011. He wants to know how much he needs to take. Is there a website that will calculate it for you? His IRA consultant told him to as his Tax prepare. I know it needs to start in year you turn 70.5 and I know it is based on total of all IRA and 401K monies. That is the extent of my knowledge. What do I tell him? Linda and buddy Quote Link to comment Share on other sites More sharing options...
grandmabee Posted April 4, 2011 Report Share Posted April 4, 2011 Client came in as asked me about the mandatory distribution he needs to take in 2011. He wants to know how much he needs to take. Is there a website that will calculate it for you? His IRA consultant told him to as his Tax prepare. I know it needs to start in year you turn 70.5 and I know it is based on total of all IRA and 401K monies. That is the extent of my knowledge. What do I tell him? Linda and buddy first the IRA manager is required to tell them every year what the RMD is. But there is a pub that gives you the % you must take out based on age and balance of accounts 12/31 of previous year. If he does wait until next year before April 1 then he must take two out that year. Just put RMD in the search on IRS website Quote Link to comment Share on other sites More sharing options...
ljwalters Posted April 4, 2011 Author Report Share Posted April 4, 2011 first the IRA manager is required to tell them every year what the RMD is. But there is a pub that gives you the % you must take out based on age and balance of accounts 12/31 of previous year. If he does wait until next year before April 1 then he must take two out that year. Just put RMD in the search on IRS website Thanks bcolleen Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 4, 2011 Report Share Posted April 4, 2011 Distribution is based on the 12/31 value of all retirement accounts. You can aggregate among like accounts (IRA, 403(, etc.), but must calculate and withdrawal from each type of account separately. Take the 12/31 value and divide it by the 'divisor', which is the IRS life expectancy. IRS has life expectancy websites on the website. This is the amount that must be withdrawn. Be careful if beneficiary is 10 years or more younger than the Retirement Account owners. The life expectancy is different. IRS has tables for this, also. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 4, 2011 Report Share Posted April 4, 2011 One more thing: I have had more than one instance where a brokerage account did not calculate the Min Dist accurately. I always double-check. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted April 5, 2011 Author Report Share Posted April 5, 2011 Thats good to know. Thanks for your help. Linda and buddy Quote Link to comment Share on other sites More sharing options...
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