Take all RMDs from an Inherited IRA
Can the sum of RMDs from more than one IRA (traditional, rollover and inherited) be taken 100% from an Inherited IRA?
For example, $10,000 RMD for traditional IRA, $5,000 RMD for rollover IRA and a $1000 RMD for Inherited IRA, can the $16,000 sum of RMDs be taken 100% ($16,000) from the Inherited IRA only and satisfy the RMD requirements for all 3 IRAs?
Permalink Submitted by Alan - IRA critic on Tue, 2022-12-06 20:38
No. Owned IRA RMDs can be aggregated with each other, but not with inherited IRAs. An inherited IRA RMD can only be aggregated with other inherited IRAs from the same original decedent. Therefore, in your example, the only aggregation allowed is between the TIRA and the rollover IRA, as the rollover IRA itself is just a TIRA. The 15,000 can be taken in any combination between these two IRAs.
Permalink Submitted by DAVID BROWN on Tue, 2022-12-06 20:48
To clarify, a traditional IRA RMD is not satisfied if taken from an Inherited IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2022-12-06 22:15
Correct, it is not. If more than 1000 is distributed from the inherited IRA, it will not reduce the amount required from the other IRAs. Inherited IRA RMDs use the single life table, and therefore produce larger RMDs at the same age as owned IRAs. The IRS does not want to allow larger distributions from the account that must be drawn down faster to be used to accumulate more money in those owned IRAs that must be drawn down at a much slower rate.