You can collect your annual RMD in a lump sum or in parts, perhaps in monthly or quarterly payments. However, delaying the RMD until the end of the year gives your money more time to increase deferred taxes. Either way, make sure to withdraw the full amount before the deadline. Since the RMD of your IRA is 3.65% and your stable value has risen in nominal terms, I designed a plan to use it in your RMD.
If you have several individual retirement accounts (IRAs), you have the option of withdrawing the total amount in RMD owed by all of your IRAs from one or more of them, instead of withdrawing each RMD from your specific account. For example, if you have an IRA lower than your total RMD, you can empty the small IRA and take the rest of the RMD from a larger IRA. However, reducing the balance of a traditional IRA reduces your future RMDs, and the money from the Roth IRA can stay in place as long as you want. With the “RMD” solution, you can ask your IRA depositary to withhold enough money from your RMD to pay your full tax bill on all of your income sources for the year.
If you have multiple IRAs, you must calculate the RMD for each account, but you can deduct the total RMD from a single IRA or from any combination of IRAs. For those born after June 30, 1949, RMD starts at age 72; for those born before, RMD starts at age 70 and a half. Mandatory Minimum Distributions (RMD) The way you calculate the required minimum distribution has just changed, and if you don't need the money for living expenses, that could be good news for you.