Featured Savings Rates

Required Minimum Distributions For Iras And Brokerage Accounts

paoli2   |     |   2,427 posts since 2011

Can anyone share if they have ways to do RMDs with brokerage accounts? Thanks

I think I may not have made it clear what my intention is for this post.  When we have CDs in an IRA in a bank, they will give us whatever amount we need for the annual RMD request out of the CD without breaking it or charging us a fee or penalty.  They all tell me it is because it is something we "must" withdraw once 70 1/2.  However, we do not get the same accommodation if we have CDs in an IRA with a brokerage.  In order to withdraw any RMD annually, we must have the amount needed available in the Cash Reserves account with the brokerage.  Your brokerage may call it by a different name.  Otherwise, we must sell the CD in order to get the RMD amount.  I asked our brokerages why they can't do it like the banks and was told it is because the banks sell us "their" own CDs and brokerages buy them from a third party and they don't have this RMD benefit.

Sooo I have to make sure I have CDs maturing for every year from 2015 so far to 2020. At a later date, I will have to go out further than 2020.  I was wondering if any of our posters have IRAs with CDs in brokerages and if they have found any other ways to make sure they have their RMD amounts available each year without having to break their CD to do so.    Maybe my way is the only sensible way to do it but if there is another way, I would appreciate hearing about it.  Much appreciation.