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Posted by Jane on April 14, 2008, 5:50 pm
Please log in for more thread options > "Jane" wrote:
> > My husband will be 78 in a month. He has a 401k and several IRA CDs.
> > The 401k is paying a steady 5%, where the CDs are paying less than 2%.
>
> > In the past we took the easy way out and let each institution decide
> > what his minimum distribution needed to be. I'm sure we took out more
> > than necessary as a result.
>
> I'm not. The calculation is the same whether you or the custodian/plan is
> doing it.
>
> > We'd like to take it all from the CDs this year.
>
> You can't. The 401(k) must calculate the required 2008 distribution based
> solely on what's in it as of 12/31/2007. If you want more flexibility for
> 2009 and after, you'll have to roll the 401(k) into an IRA during 2008
> (after you take the 2008 required distribution from the 401(k)). See IRS
> Publication 575.
>
> > How do we calculate the amount? I am 15 years younger than my
> > husband.
>
> For starters it depends on who the stated beneficiaries of the IRAs are.
> Then you look to the rules in IRS Publication 590. Once you've calculated
> the total you're free to take it from any combination of IRA accounts you
> choose.
>
> --
> Phil Marti
> Clarksburg, MD
I just read pub 575 and I see that it says each plan must be figured
separately unless they are tax sheltered annuities.
Thank you.
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