Ask the Expert: Take money from any IRA

I must take the required minimum distribution (RMD) from my IRA certificates of deposit. This year, I have IRA CDs maturing in two different banks. If I take the total RMD from one account, does that satisfy the requirement for both?

Yes. For tax purposes, your IRAs are a single pool of money, no matter how many accounts you have or where they're located. (That's why you should calculate your RMD yourself, rather than rely on an RMD calculation by one bank that doesn't know about your IRAs at other banks, mutual funds or brokerages.)

You do one calculation for all your IRAs -- including any IRA CDs that aren't maturing this year -- but you can take the actual distribution from any of them. For example, if you have six IRAs whose total balance is $600,000 and your life expectancy is 20 years, your RMD is $30,000 ($600,000 divided by 20) -- and you can take it from one IRA.

You must begin taking annual RMDs from all your tax-deferred retirement accounts -- not just IRAs -- by April 1 of the year after you turn 701/2. These distributions are based on your life expectancy and your total balance in the various accounts on Dec. 31 of the previous year. (See story at left.) As with IRAs, you can do a single calculation for all your 403(b) plans. But you must do a separate calculation for each 401(k) plan. If you owned four IRAs, two 403(b)s and three 401(k)s, for example, you'd do five RMD calculations: one for the IRAs, one for the 403(b) plans and one for each of the three 401(k) plans. (This is one reason to roll everything into IRAs at retirement!)

The bottom line Your required IRA distribution is based on all your IRAs but can be taken from any one account.

Websites with more information 1.usa.gov/s8EP1o and bit.ly/yKGCLK