Save clients from costly RMD aggregation mistakes

When it comes to taking required minimum distributions, the source matters.

Many clients have more than one retirement plan or account. When they reach age 70½ and have to start taking RMDs from their own, non-inherited accounts, the question arises as to which of these distributions can be combined and taken from just one plan.

Advisers and clients may think it doesn’t matter which account makes the distribution, as long as the total calculated amount is taken from one of the accounts. They are wrong. There are specific rules for aggregating RMDs.

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Written By: Ed Slott

Published By: www.finanical-planning.com

December 8, 2016 In: Financial Articles Comments (None)