3625. How are minimum distribution requirements calculated if an individual owns more than one IRA?Nuco Employeercline202014-06-04T13:32:00Z2014-06-04T13:32:00Z23321898Albany Law School154222614Site Map/Individual Retirement Plans/Roth IRA/Distributions/Minimum Required DistributionsSite Map/Individual Retirement Plans/Traditional IRA/Distributions/Minimum Required Distributionsrequired minimum distributions RMD MRD2005-01-25T00:00:00ZTaxFactsDefaultArticleSite Map/Individual Retirement Plans/Quick Clicks/Required Minimum Distributions114860233-00-tf1.xml234.00;#1800;#1814;#1823;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1What are the minimum distribution requirements for individual retirement plans? What is the effect of failure to meet the requirements?100300.000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-15T00:19:25Z3625. How are minimum distribution requirements calculated if an individual owns more than one IRA?If an individual owns more than one IRA, the required minimum distribution (RMD) must be calculated separately for each IRA, but the total for a category (Roth or non-Roth) may be taken from any one or more of the IRAs within the same category. This rule requires aggregation of amounts that an individual is required to take as the IRA owner and a separate aggregation for amounts that an individual is required to take as the designated beneficiary of a decedent’s IRA. Amounts taken as an IRA owner may not be aggregated with amounts taken as a beneficiary for purposes of meeting the minimum distribution requirements. Similarly, distributions from 403(b) contracts or annuities may not be aggregated with IRA distributions to meet the distribution requirements for either type of account.Treas. Reg. §1.408-8, A-9.Example: Mark, who is 71 years old, has two IRA accounts that he contributed to during his working years and inherited an IRA from his deceased father. One of his IRA’s has $50,000 (IRA 1) and the other has $75,000 (IRA 2); the inherited IRA has a balance of $25,000. Mark’s required minimum distribution from these accounts is as follows: IRA 1 = $1887IRA 2 = $2830Inherited IRA = $943.Mark must take, in total, $4717 ($1887+ 2830) from his IRAs, but could take this amount from either IRA 1 or IRA 2 (or a combination of the two). The $943 required from the inherited IRA, however, must be taken only from that account.When an RMD is required during a calendar year, any amount distributed or withdrawn from the account will first be treated as the required distribution amount until the total required distribution has been satisfied. Consequently, such a distribution is not eligible for rollover.Treas. Reg. §1.408-8, A-4. However, the minimum distribution requirement may be satisfied by a distribution from another IRA owned by the same individual.Treas. Reg. §1.408-8, A-9. In the event of a transfer from one IRA to another, the transferor IRA must distribute any amount required under these minimum distribution rules in the year of transfer--i.e. the transfer itself will not count as a distribution that satisfies these minimum distribution rules.Treas. Reg. §1.408-8, A-8.