Managing Your Account

Required Minimum Distributions

A Required Minimum Distribution (or RMD) is the amount of money you must withdraw from your tax-advantaged retirement account on an annual basis once you reach a certain age. 

However, the amount you need you to withdraw and when can vary based on your account type and date of birth.

Important Note for End-of-Year Distribution Requests

All distribution forms must be received by 11:59 pm on December 31, 2022 to be processed for the tax year 2022. Any distribution requests received as of, or after, January 1, 2023 will be processed for tax year 2023. 

Please note that if we receive your distribution request during the last few days of December, the cash distribution may not be completed by the end of the year. However, as long as we receive your completed distribution form on or before December 31, 2022,  your request will be processed for the tax year 2022, even if the funds do not leave your account until early January 2023.

For more information on how to complete the Distribution and Notice of Withholding Form, please see below. 


Do I Need to Take a Required Minimum Distribution?

Minimum distribution rules apply to the following account types: 

  • Traditional IRA
  • Solo 401(k)
  • Inherited IRAs
If you do not take your annual RMDs, you may have to pay up to a 50% excise tax on the amount not distributed as required. 

When Do I Need to Take My RMDs?

Generally, you are required to start taking RMDs when you reach the age of 72. Your distribution request needs to be submitted before December 31st, with the exception of the first year.

Beginning Date for Your First RMD:

IRAs (including SEPs and SIMPLE IRAs)

  • April 1 of the year following the calendar year in which you reach age 72
  • After the first year, you are required to take your annual RMD within the calendar year
Solo 401(k)
  • Generally, April 1 following the later of the calendar year in which you:
    • reach age 72, or
    • retire (if your plan allows this)

How Much Do I Need to Withdraw?

The amount you are required to withdraw is based on your age and the value of all accounts that you have (not just your NDTCO accounts) as of December 31st. The withdraw can be taken from any singular account or a combination of accounts. 

You utilize an RMD Calculator or reach out to your Financial Planner or CPA to help you determine the appropriate amount to withdraw. 

What Do I Need to Do to Take My Withdraw?

Please complete our Distribution and Notice of Withholding Form.

If you are completing an in-kind distribution (taking an asset out of your account), please complete the Distribution and Notice of Withholding Form as soon as possible. This process can take quite some time. You will also need supporting documentation, depending on the asset class. 

If you need to sell Precious Metals to complete a cash distribution, please contact your source or dealer and determine a sales price with them. You can then complete our Sell Direction Letter and have your source send a purchase order to NDTCO.

If you need to sell or liquidate any other type of asset to complete a cash distribution, please contact the investment manager to initiate that process, then complete our Sell Direction Letter or Deposit Coupon as applicable for the funds that will be coming into your account.

Types of Supporting Documentation

  • Real Estate: an unsigned Quit Claim Deed assigning ownership over to your name instead of your IRAs. If you are taking a partial percentage of the property, then reach out to NDTCO to determine the proper titling for the deed. We also need an appraisal of the property. If you are under the age of 72, the appraisal will need to be within the past year. If you are 72 or older, the appraisal will need to be within the last three years. 
  • Private Equity: an updated Subscription Agreement from the company showing the updated investor as yourself instead of your IRA and a Fair Market Valuation with documentation submitted within the past year prior to the distribution. The FMV requirement is waived if the asset was purchased by your account within the past year prior to the distribution. 
  • Precious Metals: no supporting documentation is required, but NDTCO will send you a shipping quote for approval before instructing your depository to send the metals to your address on file.
  • Private Debt: a copy of the new note (with the borrower’s signature) showing your name as the new lender instead of the IRA’s naming convention. 


Required Minimum Distributions for an Inherited IRA

Required Minimum Distributions for Inherited IRAs are very complex and depend on a number of factors, including but not limited to: 

  • If the beneficiary is an individual or an entity (such as a Trust or Estate)
  • If the IRA owner died before the required beginning date, or died on or after the required beginning date
  • If the beneficiary is the surviving spouse or another individual
  • Whether the beneficiary is following the 5-year rule, the 10-year rule, or is taking life expectancy payments
We highly recommend consulting your Financial Planner or CPA for determining the appropriate RMDs for your unique situation.