Inherited RMD Aggregation Rule
If a client has multiple Inherited IRAs from the same decedent. Can the total IRA accounts be aggregated? Meaning the total RMD amount be taken from one of the inherited IRAs and the RMD rules be met with the distributions from one account?
Permalink Submitted by Alan - IRA critic on Mon, 2022-06-06 20:21
Only if the RMD divisor and requirement is the same for all of the inherited IRAs. Why might they differ? If a still working 73 year old 401k participant passed before RMD and beneficiary did a direct rollover to form the first inherited IRA, but another IRA that decedent already owned (death after RBD) had required annual RMDs within the 10 year rule, the RMD requirement would differ. These accounts should not be combined, nor can the RMDs be aggregated. Another example would if a EDB beneficiary of decedent who passed prior to RMD opted into the 10 year rule on one inherited IRA but not another, the first account would not have annual RMDs, but the other would. Third example might be an EDB who inherited an IRA with another non EDB beneficiary, but separate accounts were not created by the deadline and also inherited another IRA as the sole beneficiary. To aggregate beneficiary RMDs, the RMD calculation must be the same for each, and if so the accounts may also, but are not required to be combined into a single inherited IRA.