The IRS requires you to distribute a portion of funds from your traditional IRA, SEP IRA, SIMPLE IRA, or 401(k) account. This is called a Required Minimum Distribution, or RMD.

Click Here to see the latest RMD age requirement. Once you take a distribution, the funds are subject to tax and be included as income on your personal tax return. Here are some additional information about RMDs to reduce confusion.

The Required Minimum Distribution can be taken from one IRA to satisfy the RMD for all IRA accounts.
The RMD will need to be calculated for each IRA account you have, but you can combine these and satisfy the total from any one account. The only catch to this rule is that you cannot combine the RMD of a 401(k) and IRA account; only IRA to IRA, or 401(k) to 401(k).

 Roth accounts are NOT required to take a RMD.
Roth IRA accounts are exempt from RMDs, because there is no tax due when you take a distribution from a Roth IRA. Since the government does not receive any tax revenue, they do not require a distribution from this account.

 Failure to take your RMD results in 50% Excise Tax on the total due.
For example, if you are required to take $10,000 for your RMD but failed to do so, you will be subject to a $5,000 excise penalty.

401(k) RMD can be delayed for as long as you are working for that employer.
As long as you are employed by the person/ company/ business your current 401(k) account is with, you can delay taking your RMD for as long as you are still working for that employer. This only applies to current employer 401(k) accounts however; it does not apply to former 401(k) accounts.

RMDs may be taken as cash or in-kind

Although a cash distribution is the easiest method, an in-kind distribution also satisfies the requirements. “In-Kind” may be stock, real estate, precious metals, or other assets in your account that you either do not want to sell or cannot sell. This will require extra paperwork and time to process, so if you plan to take your RMD in-kind, be sure to allow extra processing time.

As the custodian of your account, Cama will notify the qualifying accounts of RMD dates and calculated RMD amounts based upon the information we have.

More Information

For further information regarding Required Minimum Distributions and the IRS requirements, please visit