Required Minimum Distribution
Rev. 03/21/02Q. May an individual with several Individual Retirement Accounts (IRAs) calculate the required minimum and withdraw it from one IRA or must the minimum be withdrawn from each IRA that the individual owns?
A. According to IRS Notice 88-38, the owner of two or more IRAs may use the "alternative method" to satisfy the minimum distribution requirements by taking from one IRA the amount required to satisfy the minimum requirement for another IRA(s). To do so, the IRA owner must calculate the minimum for each IRA separately, total the minimum required amount for each IRA; and then withdraw that total amount from any of his/her IRAs. Please note that Notice 88-38 only applies to IRAs, therefore, each qualified plan must distribute a participant’s required minimum.