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.
We'd like to take it all from the CDs this year.
How do we calculate the amount? I am 15 years younger than my husband.
Thanks.
I'm not. The calculation is the same whether you or the custodian/plan is doing it.
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.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.
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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