23 Jan What accounts count for my annual RMD?

Q. I’m 70 years old and am starting to get my ducks in a row for RMD down the road. What assets actually go into this calculation? Annuities and 401(k) I understand, but do CDs and savings/checking accounts go into the mix too? I’m not sure how to set things up for the least amount of tax penalties. Also, what is the best place to deposit or invest these RMD payments if you don’t need them immediately?
— Retired

A. We’re glad you’re planning ahead.

You certainly don’t want to face penalties for taking too little, and you probably don’t want to take more than you need.

The types of accounts that count toward your RMD calculation are tax-deferred accounts, such as IRAs (Traditional, SEP, SIMPLE), tax-deferred annuities and defined contribution plans (401(k), 403(b) and 457(b) plans), said Victoria Cannillo, an associate financial planner with Baron Financial Group in Fair Lawn.

There are also inherited IRA accounts, but they have their own set of rules, she said, noting that any non-tax-deferred accounts like you mentioned — savings or checking accounts — would not apply.

If you are not in need of the money, there are some options available, Cannillo said.

“For example, once you take the RMD, you can reinvest that money in a taxable account,” she said. “You can also use that money for gifting if you wished.”

There is also the possibility of doing a Qualified Charitable Distribution (QCD) where you could make donation(s) directly to a charity from your account that would count towards your RMD, if done correctly, she said.

Consider working with a financial professional who can help to keep track of your distributions, as well as help you implement a strategy that works for your personal goals and needs.

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This story was originally published in January 2026. 

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.