1 Reply Latest reply on May 6, 2016 12:16 PM by JerryD

    Brokerage platforms associated with IRAs

    Dale M. Richardson

      A few months ago I established brokerage platforms within a couple of IRAs. Conceptually, thinking about one of them, I have an IRA which is subject to annual required minimum distributions. I recognized the 2016 RMD in the IRA and then sold some funds within it. I established a new brokerage account in my TIAA brokerage window (That was challenging...not everyone at TIAA is familiar with the process.) and funded it with this money. It is named to identify it as having a relationship to an IRA, but does not carry the RMD verbage that my original IRA accounts do. (All of the naming of the new account is TIAA's.)

       

      I am purposely leaving some funds in the original IRA account for selected investment purposes and to use for future RMDs. My question is does anyone have similar experience to know about satisfying those future RMDs? Do I even have to think about the new brokerage account and paying a RMD from it? Can I simply ignore that consideration and let the RMD calculation be done in the nonbrokerage IRA account? If that is the case, then I it seems I am dodging the tax consequence of IRAs and RMDs.

       

      Thanks,

       

      Dale M. Richardson

        • Re: Brokerage platforms associated with IRAs
          JerryD

          Dale says: "Do I even have to think about the new brokerage account and paying a RMD from it? Can I simply ignore that consideration and let the RMD calculation be done in the nonbrokerage IRA account?"

           

          You SURE DO! The amount in the brokerage account should be included in the value of the IRA total.

           

          I always note the value of any IRA on December 31 of the previous year. This value, your age and the mandatory IRS multiplier determine the exact amount of your RMD for the next year. I also calculate the RMD early in the year so I know how much I need to take. That leaves when I will actually take it. I take it as close to the year end as possible in order to benefit from further gains during the year.  GOOD LUCK!!!!!    :-))))))