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RMDs On Account Which Has Grown In Value

Thursday, May 23, 2013 - 8:46 AM
From AssetBuilder:
I have some questions regarding limits on required minimum distributions. I am a 70-year-old divorced female in good health. I retired late last year. In January I set up monthly RMD withdrawals to meet my obligation for 2013. The withdrawals are to be deducted from my money market fund in my SEP IRA account. The amount of my annual RMD was based on a percentage of my account balance at the end of 2012. The total value of my account rose by nearly $8,000 during the first quarter of 2013. I’m not sure, but I think at some point my RMDs are legally obligated to empty the SEP IRA account. In the event I should be able to continue growing the account balance while making future RMD’s, could I continue to invest? If that is permissible, will I be required at some point in the future to move all the remaining funds to a taxable account?

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This is definitely a good problem to have.  
pearlbrownpearlbrown1,485 posts since
Nov 2, 2010
Rep Points: 6,454