IRA RMDs

Submitted by Jason Hochstadt on Thu, 2015-11-19 15:27

Hello,
I am just confirming that in the case of an individual w/ a Traditional IRA and a Rollover (Traditional) IRA, the RMD may come from either or both IRAs since they are both IRAs and would follow the IRA rules (can take from any one or all – even if one is a pure Traditional IRA and the other is a Rollover IRA of a pre-tax qualified employer sponsored retirement plan).
Thanks.
Jason



Submitted by Alan - IRA critic on Thu, 2015-11-19 21:17

Yes, the total RMD can be taken in any combination from these IRA accounts.

Submitted by Karen Elise Kilbride on Mon, 2015-12-14 22:06

Hello, On question above, does this also hold true if the second IRA is an inherited IRA account?  As example, the total balance on an inherited IRA was withdrawn in 2015 say $70,000 with MRD on inherited IRA being much less say $2,000.  Can total MRD distribution from second Traditional IRA (not inherited) take into consideration the balance withdrawn from inherited IRA which is in excess of MRD for inherited IRA?Thank you

Submitted by Alan - IRA critic on Mon, 2015-12-14 22:45

  • No. Inherited IRA RMDs can only be aggregated with other inherited IRAs from the same decedent. Was this example prompted by taking a large inherited IRA distribution with the intent to roll it over, but then realizing that only a surviving spouse can roll over a distribution from an inherited IRA?
  • The reason that this rule exists is to prevent a person from drawing down an IRA will a higher RMD %, and saving the balance in an RMD with a lower RMD %. If this could be done, the IRS would collect taxes more slowly over time than what the RMD Regs intend.
  • Some exceptions apply to a surviving spouse beneficiary doing a spousal rollover.

Submitted by Karen Elise Kilbride on Tue, 2015-12-15 14:46

No, not prompted by any distributions, looking at all possbilities. thank you

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