How to Withdraw Multiple Funds From an IRA to Satisfy an RMD

Required minimum distributions from traditional IRA plans are required after age 70 1/2.

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Upon turning 70 ½, and each year onward, the IRS will require you to take required minimum distributions, or RMDs, from your IRA accounts. RMDs ensure the government receives taxes from the funds that were deposited pre-tax. The minimum distribution rules apply to all retirement plans except Roth IRAs because Roth IRAs are after-tax money and grow tax-free. The required minimum distribution must be recalculated as balances change.There is flexibility in RMDs, though. Funds may be withdrawn from a single account, multiple accounts, in equal amounts or unequal amounts as long as the total RMD is met by Dec. 31.

Step 1

Refer to your account balance at the end of the year in which you turn 70 ½. This information is most easily found on your year-end statement.

Step 2

Consult the IRS life expectancy tables in the appendices of Publication 590 for the appropriate life expectancy number. Life expectancy must be recalculated each year.

Step 3

Divide your account balance by the life expectancy number; this is your RMD. Repeat this procedure for each of your IRA accounts.

Step 4

Add the total of each account's RMD and divide that sum by 12 to find your minimum monthly withdrawal amount. Withdrawals do not have to be in 12 equal increments as long as the total RMD for all accounts is met by Dec. 31.

Step 5

Schedule automated withdrawals with your financial institution to ensure your obligations are met. Withdrawals may be made from a single account or multiple accounts. Withdrawal amounts need to be recalculated each year because RMDs change yearly.