FAQs

You can start withdrawing from your Self-Directed IRA without penalty when you're 59½ years old. However, you're not required to do so until you're 73.

According to the Self-Directed IRA distribution rules, account holders must take the required minimum distributions (RMDs) each year beginning with the year they turn age 73. The RMD for each year is calculated by dividing the IRA account balance as of Dec. 31 of the prior year by the applicable distribution period or life expectancy. These distribution rules do not apply to a Roth IRA; you never have to take RMDs from a Roth account. You can determine your distribution period or life expectancy by using the tables in Appendix B of Publication 590-B, Distributions From Individual Retirement Arrangements (IRAs).

• Table I: For beneficiaries
• Table II: For owners whose spouse is 10 years younger and the IRA's sole beneficiary
• Table III: For all other owners (most IRA owners will use this table)

You can take Self-Directed IRA distributions from your Madison Trust account by completing a distribution request. In this request, you can document exactly how you want your distributions to be made, including the type, amount, and frequency. Depending on your preference, distributions can be sent to you via check, wire, or recurring ACH transaction. If you plan to do infrequent distributions, such as once a year or at random intervals, choosing ACH is not an option. ACH is only a viable option if you plan to do recurring distributions at least quarterly.

To take a distribution from your Self-Directed IRA, contact a Madison Trust specialist and provide the following items:

• Distribution request form
• Updated third-party certified value (such as an appraisal, letter from investment sponsor, or CPA-certified valuation)
• Any additional documents required for some types of investments (real estate, notes, etc.)

Upon receiving this information from you, Madison Trust will send you an assignment of interest to document the transfer of ownership from your Self-Directed IRA.