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Level 3

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

Traditional IRA is after-tax contribution and I have records of all the contributions.  MRDs from this IRA would lower my current tax payments . MRD from Employer 401K which are pre-tax contributions. Can I withdraw my total MRDs from the traditional IRA only? Thanks

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Accepted Solutions
Level 20

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

An account owner must take the first RMD for the year in which he or she turns 70 ½. However, the first RMD payment can be delayed until April 1st of the year following the year in which he or she turns 70 ½. For all subsequent years, including the year in which the first RMD was paid by April 1st, the account owner must take the RMD by December 31st of the year.  If you wait to take your first RMD until the following year, you will still need to take another  RMD for the same year.  So you will have to take 2 RMD that year.

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.

However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

See this IRS FAQ on RMDs….
http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions

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7 Replies
Level 20

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

An account owner must take the first RMD for the year in which he or she turns 70 ½. However, the first RMD payment can be delayed until April 1st of the year following the year in which he or she turns 70 ½. For all subsequent years, including the year in which the first RMD was paid by April 1st, the account owner must take the RMD by December 31st of the year.  If you wait to take your first RMD until the following year, you will still need to take another  RMD for the same year.  So you will have to take 2 RMD that year.

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.

However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

See this IRS FAQ on RMDs….
http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions

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Level 3

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

Thanks. I was under the impression that I could withdraw total calculated MRDs from any one account!
Thanks for clarifying that the Employer 401 K ( Fidelity netbenefits) and traditional IRAs ( Fidelity Traditional non-deductible) are two separate entities, and MRDs taken separately.
Level 20

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

ps....the proper way to say it is RMD  required minimum distribution.
Level 19

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

no. if rmd's are required from both 401k and IRA they must be taken from the proper account.   failure to do so could result in a 50% penalty.  

Level 3

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

Thanks. I was under the impression that I could withdraw total calculated MRDs from any one account!
Thanks for clarifying that the Employer 401 K ( Fidelity netbenefits) and traditional IRAs ( Fidelity Traditional non-deductible) are two separate entities, and MRDs taken separately.
Level 19

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

you can satisfy your IRA requirement from any one or any combinations of the IRAs.
each of your 401(k)s must be treated separately and a distribution taken..
Level 3

I have a nondeductible Traditional IRA(after-tax contributions) and an Employer 401K plan. Can I withdraw all my MRDs from the nondeductible IRA and none from the 401K ?

Thanks