IRA Minimum Distributions ?

Yes, you have 'one IRA' it's just broken up into different accounts. You take the total 12/31/06 value, calculate the RMD from that, and take it from whichever account(s) you choose. It's line 15a/b on the 1040, with a supporting 1099-R if you use TurboTax. No different since that line is the total of all distributions, for those who do it that way.

No. You can take stock as a distribution, with one warning. Say you take $10,000 value of XYZ company. You satisfied the RMD for $10K, and moved those shares to your non-IRA account. Now, your basis is $10,000 for that stock. And the clock starts for long term treatment, i.e. the distribution date is your purchase date. This move just lets you avoid the two commissions you'd incur by selling in the IRA, and buying outside.

Two further points; If you do not itemize, but you do donate to charity,

2007 is your chance to make a donation directly out of the IRA. You get no tax deduction (you don't anyway, if you don't itemize) but this counts toward your RMD and you don't pay tax of it.

Second - see

and understand your marginal tax bracket. You should consider whether converting some IRA money to a Roth each year can benefit you. Since your IRA is growing and your RMD divisor, decreasing (ever larger withdrawals), you may find that in November each year you can convert enough to 'top off' your current bracket and avoid or delay being forced into the next bracket.I give more details at on this approach. If you have any questions on this strategy, post back here.JOE

So you are saying that you can take from your convential IRA, pay the tax and put the money into a Roth IRA? This seems like a good thing to do if you don't need the money that year.

Yes, there are restrictions you need to be aware of; Your Modified Adjusted Gross Income must be under $100K for you to convert. The RMD from the IRA counts toward the MAGI, but the amount converted doesn't. A good strategy to consider, but not necessarily for everyone. JOE