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An investor, who is over 75, has two different IRAs. If the first IRA has an RMD of $4000 and the second IRA has an RMD of $6000, can he satisfy both RMDs by taking out $10,000 from the first IRA?

I live in the United States.

Chris W. Rea
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Bob
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1 Answers1

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For IRAs, yes as long as you take out the entire amount you can satisfy the total RMD from one account (or any combination).

This is NOT true for 401(k)s - you are required to take RMDs for each 401(k) as directed (I don't know why).

From the IRS:

How should I take my RMDs if I have multiple accounts? If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you may aggregate your RMD amounts for all your IRAs and withdraw the total from one IRA or a portion from each of your IRAs. You do not have to take a separate RMD from each IRA.

If you have more than one [401(k)], you must calculate and satisfy your RMDs separately for each plan and withdraw that amount from that plan.

Exception: If you have more than one 403(b) tax-sheltered annuity account, you can total the RMDs and then take them from any one (or more) of the tax-sheltered annuities.

Which is yet another reason why it's generally a good idea to roll 401(k)s over into IRAs.

D Stanley
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