The minimum amount Traditional IRA owners must receive upon reaching age 73 is referred to as the required minimum distribution (RMD).
Q: Why do I need to take a distribution from my IRA?
A: Upon reaching age 73, the IRS requires Traditional IRA owners to receive distributions from their IRAs each year. The minimum amount individuals must receive is referred to as the required minimum distribution (RMD). Based on our records, you are required to receive an RMD this year and each subsequent year, until all assets have been removed from your IRA.
Q: Can I take my RMD from another IRA?
A: Yes, you may satisfy the RMD for this IRA by taking the amount from a Traditional, SEP, or SIMPLE IRA at another organization. If you would like to proceed in this manner, select "Do not schedule automatic distributions to satisfy my RMD each year" in the Distribution Information section of the RMD Election you received from your financial organization.
Q: Do I need to withhold on the distribution for federal or state taxes?
A: Distributions from your Traditional, SEP, or SIMPLE IRA are subject to federal income tax and state income tax, if applicable. You may want to contact a competent tax advisor to determine your withholding election on the RMD Election.
Q: After I make an RMD election, can I change it?
A: Yes, you can change your RMD election at any time by contacting your financial organization for assistance.
Q: I am already receiving recurring distributions from my IRA. Do I need to complete an RMD Election?
A: Yes. Even if you were receiving distributions from your IRA before turning age 73, you must complete the RMD Election to document how you’d like to receive your RMD. You may select the same payment frequency, but the amount you receive may change to ensure that you now receive the required amount every year.
Q: Can I withdraw more than the RMD?
A: Yes. You may either contact the financial organization to withdraw more from your IRA at your own discretion, or you may select to receive more than the RMD on the RMD Election by checking the "Specific Amount" box in the Distribution Schedule section and entering the amount you'd like to receive each year. If the amount specified is less than your RMD for the year, the RMD amount will be distributed to you.
Q: Do I need to receive the RMD from my IRA?
A: You must satisfy the RMD requirement by removing the minimum amount required from the IRA. But you are allowed to make a qualified charitable donation (QCD) instead of receiving the assets yourself. If the assets are paid directly to a qualified charitable organization, your RMD will not be subject to federal income tax. You may only make QCDs of up to $105,000 for tax year 2024 or up to $108,000 for tax year 2025 from all of the Traditional IRA, Roth IRA, and certain SIMPLE IRAs that you own either directly or as a beneficiary. You may want to consult with your tax advisor for assistance in determining your eligibility for a QCD.
Q: May I contact anyone with additional questions?
A: Yes. You may contact a representative at your financial organization or a competent tax advisor for additional assistance.