Withdrawals From Retirement Accounts: What Seniors Need to Know

Do I need to make a withdrawal from each retirement account individually?
If you have multiple IRA accounts, you must include all the IRA balances in your RMD calculation, but you don't have to take money out of each one. You can choose to make a withdrawal from a lower-performing account or an account with higher fees to improve your nest egg overall.

RMDs must be calculated separately for your 401(k) and taken from that account. If you are an employee who is still working, you can delay distributions from 401(k)'s until you retire, regardless of your current age. If you own at least 5 percent of the business, you cannot delay distributions.

Should I give my required minimum distribution to charity or donate outside my retirement account?
You can avoid paying income tax on your retirement account withdrawals by having the trustee of your retirement account donate the RMD of up to $100,000 to charity. "Since IRA distributions are taxed at ordinary income rates, most taxpayers would probably benefit by gifting directly from the IRA, since it can go toward the required minimum distribution and there is no income tax due," says Itzoe. "For most people, this is probably better than paying tax on the distribution, gifting the money, and receiving a charitable deduction."