Aggregate inherited IRAs for RMD

Submitted by Robert Wright on Wed, 2016-06-22 15:56

I inherited 5 separate IRAs from my father.

Can I aggregate my inherited IRAs for RMD purposes and take the entire 2016 RMD from just one or two of the five accounts?

Permalink Submitted by Alan - IRA critic on Wed, 2016-06-22 17:51

If you inherited directly (not through his estate), you can aggregate the RMDs for these accounts in any combination if you are using your LE to determine the RMDs rather than the 5 year rule.
However, aggregation of RMDs does not always mean you can combine the actual accounts. Combining of inherited IRAs should only be done if the RMD divisor is the same for the combined accounts. For example, if you were the sole beneficiary on one IRA and on the other there was an older beneficiary and separate accounts were not created before the deadline, your RMD for the latter inherited IRA would be determined using the divisor for the older beneficiary. This IRA could not be combined with one you inherited directly without the RMD for the other IRA rising since there can be only one RMD divisor per account. This also holds true for any IRAs you may have inherited from your father that he himself inherited and was maintaining as in inherited IRA.

Permalink Submitted by Robert Wright on Wed, 2016-06-22 19:57

Thanks Alan.