RMDs from multiple bene IRAs
I inherited 2 traditional bene IRAs. Do I have to take an RMD from each or can I elect to take total distribution (let’s call them RMD1 + RMD2 = total RMD) from one account only, where the trustee does not charge a $25 distribution fee.
Thank you.
Permalink Submitted by Alan Spross on Fri, 2007-10-12 02:09
You can aggregate RMDs on inherited IRAs if they were inherited from the same owner. You should still figure the RMD separately because there are some cases where different divisors would apply to different inherited IRAs. But you can then distribute the total of the RMDs from just one of the accounts, or in any combination from both of them.
Permalink Submitted by Masha Shoykhet on Fri, 2007-10-12 03:43
Thank you very much — this is the answer I was looking for :).
Just to confirm, if bene IRAs were both inherited from the same person (i.e. date of death and therefore of inheritance are the same), the divider would be the same for both, correct?
Permalink Submitted by Alan Spross on Fri, 2007-10-12 04:20
In most cases, probably 90%+ yes, but not always. For example, if one of your inherited IRAs resulted from a multiple beneficiary account and separate accounts were not set up by the deadline, the oldest beneficiary’s divisor would apply to each separate IRA account. Also, if a non spouse transfer was done from an employer plan for a pre 2006 death, the 5 year rule could apply to the IRA. If an IRA was assigned to beneficiaries of an estate following probate, the 5 year rule could also apply or the owner’s remaining life expectancy had he lived.
That’s why it is safer to figure each RMD separately and then add them. If you elect to simply total the prior year balances and divide the total by a single divisor, you need to know for sure that you do not fall under one of the above exceptions or any other exceptions.