RMD from Rollover IRA and TIRA
Can I aggregate my rollover IRA and my Traditional IRA (not a rollover IRA) for purposes of taking my RMD?
That is, can I take the RMD attributable to the TIRA from the Rollover IRA?
Can I aggregate my rollover IRA and my Traditional IRA (not a rollover IRA) for purposes of taking my RMD?
That is, can I take the RMD attributable to the TIRA from the Rollover IRA?
Permalink Submitted by Alan Spross on Fri, 2012-10-12 19:39
Yes, you can.
A rollover IRA IS a traditional IRA. The term “rollover” just means the funds came from a qualified employer plan.
When you aggregate, you should still calculate the RMDs separately, add them up and then take them in any combination from the IRA accounts. That’s the safe way to calculate the RMDs.
As a short cut, if you are totally sure that the RMD divisor is the same for all IRAs, you can add up the prior year end values and divide once.
But the RMD divisor is not always the same. For example, if you were married and your spouse was more than 10 years younger than you and sole beneficiary of an IRA, the divisor would be different than another IRA on which your kid was the beneficiary.
Inherited IRA RMDs cannot be aggregated with owned IRA RMDs.
Permalink Submitted by Robert Wright on Fri, 2012-10-12 19:41
Alan,
Thank you very much.