Considering 2021 RMDs? Remember These Aggregation Rules, Sep. 2, 2021

As summer draws to a close, many clients may be taking steps to take their 2021 required minimum distributions (RMDs) from retirement accounts. Clients with multiple accounts should remember that they may be required to take more than one distribution from these accounts. In other words, not all RMDs can be aggregated and taken from any account. Failure to take the correct RMD from the correct account can expose the client to significant tax liability. When calculating RMDs, IRAs (including SEP and SIMPLE accounts) are calculated separately, but the total RMD can be taken from any IRA. Company-sponsored 401(k)s must be calculated separately for each plan and the RMD must be taken separately from each specific 401(k) account. RMDs for 403(b) plans must be calculated separately and the total RMD for all 403(b) plans can be taken from any one or more of the 403(b) plans. For more information on the RMD aggregation rules, see Q 3684.