rmd for trad ira and for inherited ira
If a person is 75 years old and has a Trad IRA and an Inherited IRA, can the total of both RMd’s be taken from one of the IRA’s? For example, if the RMD from the Trad IRA is 12,000 and 2,000 from the Inherited IRA, can this person take a RMD of 14,000 all from the Inherited IRA? Thank you.
Permalink Submitted by Alan Spross on Mon, 2011-08-01 16:59
No, the RMDs must be kept totally separate unless the inherited IRA came from a spouse and ownership is assumed.
And if either IRA has basis from non deductible contributions, the amount of basis must also be kept separate and a separate Form 8606 would apply for each IRA.
Permalink Submitted by Peter Lingane on Mon, 2011-08-01 17:08
See Reg §1.408-8 Distribution requirements for individual retirement plans.
Q-9. Is the required minimum distribution from one IRA of an owner permitted to be distributed from another IRA in order to satisfy section 401(a)(9)?
A-9. Yes, the required minimum distribution must be calculated separately for each IRA. The separately calculated amounts may then be totaled and the total distribution taken from any one or more of the individual’s IRAs under the rules set forth in this A-9. Generally, only amounts in IRAs that an individual holds as the IRA owner may be aggregated. However, amounts in IRAs that an individual holds as a beneficiary of the same decedent and which are being distributed under the life expectancy rule in section 401(a)(9)(B)(iii) or (iv) may be aggregated, but such amounts may not be aggregated with amounts held in IRAs that the individual holds as the IRA owner or as the beneficiary of another decedent. Distributions from section 403(b) contracts or accounts will not satisfy the distribution requirements from IRAs, nor will distributions from IRAs satisfy the distribution requirements from section 403(b) contracts or accounts. Distributions from Roth IRAs (defined in section 408A) will not satisfy the distribution requirements applicable to IRAs or section 403(b) accounts or contracts and distributions from IRAs or section 403(b) contracts or accounts will not satisfy the distribution requirements from Roth IRAs.
Permalink Submitted by mk foss on Mon, 2011-08-01 17:08
No – the rule doesn’t work like that. A traditional IRA RMD can be taken from any traditional IRA that the IRA owner has; distributions do not have to come pro rata from each account. The inherited IRA RMD is different, it’s based on a separate table.
The only time that you can take an inherited IRA RMD from another inherited IRA is if you have at least two IRAs inherited from the same person.