In article <Js5qj.69484$_m.67144[at]bignews4.bellsouth.net> ,
Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -


Separate out the IRAs for which you are the beneficiary from
those to which you have yourself rolled into or contributed.

Since those IRAs you inherited as a bneficiary could have had
an 8606 out on them, and you could have an 8606 for your
contributory IRAs, the 8606s can be different. It goes without
saying, which is why I'm saying it, that when you inherit an
IRA you also inherit the 8606 attached to that IRA.

If you are unfortunate enough to have inherited from several
different people, you could be multiple independent 8606s.

That means trying to coerce your software to produce multiple
8606s for the same taxpayer!

Think about how you would go about doing that.


Or maybe you have smart software and, if so, I'd like to see
tax in a box match that.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
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"Alan" <sfcnm-mtm[at]yahoo.com> wrote in message
news:W%5qj.6662$so6.5637[at]newssvr19.news.prodigy.net...
- quote -

Yes, I did miss that - because I'm used to people who have a SINGLE IRA
account and don't have these complications. So much for the classical
treatment by the IRS to treat all IRAs as one....

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

D. Stussy wrote:
- quote -

expectancy (see Appendix C of Pub 590). Table I Single Life
Expectancy has the factors that must be used by a beneficiary of
an IRA who has elected to take minimum distributions over their
lifetime rather than emptying the account in five years.
Table II Joint Life & Last Survivor has the factors that must be
a taxpayer that has his spouse as a sole beneficiary and the
spouse is more than 10 years younger than the taxpayer. Table III
Uniform Lifetime has the factors for everyone else.

A taxpayer could very easily have more than one IRA requiring the
use of more than one table. Therefore, I always caution
everybody that asks about this, that you shouldn't say add them
all up and calculate the MRD. You can only add them all up if
every IRA falls into the same category.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Alan wrote:
- quote -

have to remember it next year when it's time to do my own calculations
from multiples IRA's and different beneficiaries.

Even after one does the math, i.e separate calculations, he can then add
them up, round up to nearest 100 (my opinion), and take the
distribution from one of the IRA's. At least I hope so.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Alan" <sfcnm-mtm[at]yahoo.com> wrote in message
news:BB0qj.5454$5K1.4835[at]newssvr12.news.prodigy.net...
- quote -

IRAs don't have "joint & survivor" elections - so why would any beneficiary
(beyond the original IRA holder himself) matter for MRD purposes? The
beneficiary's LE only counts when he/she inherits the IRA.

- quote -



========================================= MODERATOR'S COMMENT:
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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Phil Marti wrote:
- quote -

together to compute the MRD. It is quite possible that the
taxpayer life expectancy for each IRA account is different. E.g,
one IRA has a spouse who is more than 10 years younger as the
sole beneficiary; one IRA has the taxpayer's child as a sole
beneficiary; and a third IRA is a beneficiary IRA inherited from
a parent. Three different tables would have to be used to
compute the three MRDs. Then and only then, could the taxpayer
make the decision as how one would like to take the total MRD.



- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

in article 47A86D9E.2C56[at]mindspring.com, Ron Hardin at
rhhardin[at]mindspring.com wrote on 2/5/08 9:27 AM:
- quote -

8606 and its associated worksheets. IRAs are separate from retirement plans
so you will have two distributions but all the plans of each type are
aggregated together. That is why there is a little box on the 1099R to
check if the distribution is from an IRA.

You put in the prior year end value of all the plans of each type. And that
is the basis for calculating the RMD based on your age. The tax free part,
if any is calculated by dividing the total amount of after tax contribution
/ the total value to get a fraction which is multiplied by the amount of the
distribution. Example, After tax contributions of $10,000 in an account
worth $100,000 will give you 10% of the distribution tax free.

IRAs work the same way but are calculated separately. If you roll your tax
deferred large 401(k) balance into your IRA, you make the denominator of the
fraction much larger and the tax free part of the annual distribution may
shrink to a very small amount.

You can take the distribution from any one of the accounts or all of them.
There is no requirement that it be done on a proportional basis but if you
have both IRAs and non-IRAs, they must be handled separately.

All freely provided advice guarantee correct or double your money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Ron Hardin" wrote:

- quote -

No. Each 401(k) is required to calculate and distribute the RMD. All your
traditional IRA accounts, including SEPs and SIMPLEs get lumped together for
the calculation, then you're free to take your RMD from whatever account(s)
you like.

Each 401(k) also has a lot of leeway in terms of what distribution methods
are available, so you need to check them individually. You can always roll
a 401(k) from a former employer into your traditional IRA before the year
you reach 70 1/2.

- quote -

All withdrawals wind up lumped on your return. You lump all traditional IRA
accounts when calculating the taxable portion. If there are after-tax
amounts in a 401(k) there are different rules depending on the type of
distribution.

See IRS Publications 575 and 590 and Form 8606.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Owing to a checkered employment history, some
questions in advance:

1. With multiple IRAs 401ks and SEPs, can I
withdraw from just one account for the totaled
required minimum distribution?

2. If so, do after-tax contributions just figure
somehow into the computation of tax for the total,
or just the ones for the account from which the
withdrawal is made?

A question of how after-tax additional
contributions are handled, and allocated to
accounts, and to withdrawals.
--
rhhardin[at]mindspring.com

On the internet, nobody knows you're a jerk.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >