@hp15 wrote:
The letter from my bank said I must start withdrawing a required minimum distribution after 4/1/2021. I am withdrawing monthly from my IRA already.
Sounds like a form letter.
Your RMD is the minimum amount you must withdraw during the year based on your age and the balance in the account. It is not a single transaction, and you can always withdraw more. It's a good idea to take a look at your finances around December 1 and see if you need to withdraw any extra before the end of the year.
For example, suppose that based on your age and account balance, your RMD for 2022 is $5000. You have been withdrawing $500 per month all year long. You will already have withdrawn more than the minimum, so no worries. Or, suppose you were withdrawing $400 per month. You will come up a $200 short by the end of the year, so you need to withdraw at least $200 extra in December.
There are some things you can't do with your RMD, like roll it over into another retirement account. If your RMD was $5000 and you withdrew $500 per month ($6000 total) then Turbotax would like to know what your RMD was, so it can double-check that you didn't do anything improper, like rollover the RMD portion into another account.
