AGGREGATING IRAs AND RMD CALCULATIONS: TODAY’S SLOTT REPORT MAILBAG

Thursday, November 21, 2019

By Ian Berger, JD
IRA Analyst
Follow Us on Twitter: @theslottreport

Question:

I am over 71 and have 2 IRAs, one in my name, the other is inherited.

Can I take one RMD from the inherited IRA to satisfy both?

Or must I treat them separately and do 2 separate RMDs?

Thank you!

Tyler

Answer:

Hi Tyler,

You must treat the IRAs separately and take two separate RMDs.

If you own more than one IRA (not inherited), you can aggregate them and take the RMD from any one (or more) of them. The same is true for inherited IRAs that came from the same original IRA owner and are of the same type (e.g., Traditional vs. Roth). But you cannot aggregate IRAs that you own and IRAs that you inherit.

Question:

Hello,

I am hoping that you can help me out with one question or otherwise direct me to another format to solicit the correct answer.

Mr. Smith turns 81 on December 1, 2019. To calculate his current RMD using his 12-31-18 balances, which age factor should be used: 80 or 81?

Thank you,

Mark

Answer:

Hi Mark,

The RMD calculations can be tricky.

To calculate an RMD for a particular year, you always use the factor corresponding to the individual’s age as of December 31 of that year. So, in your example, you would use the age 81 factor for Mr. Smith’s 2019 RMD (which is 17.9 from the Uniform Lifetime Table).

 

Post Views: 1
Posted in: ,

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:

Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:

Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:

Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.