Minimum distribution – inherited IRA
I know that one cannot aggregate traditional IRAs with inherited IRAs for purposes of calculating MRDs. I know that the MRDs have to be calculated differently, using different tables. My question is this. If one takes out more than the RMD from an [b]inherited IRA [/b]in a particular tax year, will the amount distributed in excess of the MRD satisfy part of the MRD of a separate traditional IRA? For example, if the inherited IRA MRD was $3,000 and the traditional IRA RMD was 5,000 and the IRA owner distributed $8,000 from the inherited IRA, would his/her RMDs be satisfied for all the IRAs for the tax year?
Permalink Submitted by tomd37 on Thu, 2012-06-21 21:27
It is my understanding that each RMD is calculated separately and must be taken separately in accordance with those calculations. That is one RMD cannot satisfy the requirement of the other. Let’s see what others say.
Tom D.
Permalink Submitted by Alan Spross on Thu, 2012-06-21 23:09
Tom is correct.
In this example, the taxpayer would still have to take the 5k RMD from the owned IRA.
The only situations where RMDs can be aggregated (ie taken from another account of the same type) are:
1) Owned traditional IRAs (exceptions apply after IRA annuitization)
2) Inherited traditional IRAs from the same decedent using life expectancy
3) Inherited Roth IRAs from the same decedent using life expectancy
4) Owned 403b plans
5) Inherited 403b plans from same decedent using life expectancy
Permalink Submitted by Stephen Moore on Fri, 2012-06-22 13:58
Tom and Alan,
Thank you both for your input. I appreciate the help.
Stephen