IRA Aggregation Rule

Most people with retirement accounts are aware that they must take RMDs (required minimum distributions) each year after they turn 70½.

But if you have more than one IRA, your RMDs must be calculated separately for each IRA.

However, if you have multiple IRAs of the same type, you can aggregate your RMD amounts and take all or a portion of your RMD from one, some, or each of your IRAs of the same type.

Traditional, SEP and SIMPLE IRAs are all included for purposes of the aggregation rule.

*Beneficiaries:

If you are a regular IRA beneficiary, the aggregation rule is only applicable if the same type of IRA is inherited by the same beneficiary from the same decedent. You can’t include your own IRA with inherited IRAs (even if they are the same type) for purposes of the aggregation rule.

Source: www.irs.gov

More Updates

CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

Read More »

Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

Read More »

Tapping Into Retirement Accounts If Not Directly Impacted By COVID-19

The recently-­‐enacted Coronavirus Aid, Relief, and  Economic Security Act (CARES  Act) signed by President Trump  on  March  27, 2020, allows  “qualified individuals” to take up  to  $100,000 of  penalty-­‐free IRA and company plan withdrawals during 2020. “Qualified individuals” include those who are (or whose family members are) sickened by the virus or who have virus-­‐related

Read More »
Scroll to Top