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IRAs & Required Distributions

Question: 
I recently attended Ken Golliher's IRA Administration class. I am somewhat confused. We have a customer that opened an IRA with us a few months ago. He said that he did not have to take a distribution from his IRA that he transferred to AFB. He is 77 years old, isn't he required to take a distribution?
Answer: 

With a traditional IRA, there is a required minimum distribution amount (RMD) for every year beginning with the year the participant reaches age 70 1/2. The amount must be calculated for each IRA the customer has. The only way that it does not have to be withdrawn from that account is if it is withdrawn from another of the participant's IRA.

Roth IRAs do not have RMD's for participants.

If he has a Roth, he is right. If he has a Traditional, he is either wrong or he is taking the RMD from a different account.

First published on BankersOnline.com 2/4/02

First published on 02/04/2002

Filed under: 
Compliance
Filed under compliance as: 
IRA
IT

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