QUESTION:
I have IRA accounts which are also subject to RMDs. I am looking to sum all retirement accounts (Solo401K, Traditional and SEP IRA’s) to get the total RMD amount, taking that total RMD amount from one IRA account. I believe this to be kosher, particularly as it seems the filing dates are the same for each of the account types?
ANSWER:
Unlike IRAs where the participant can distribute the total amount from one or more of his or her IRAs, the 401k rules including the solo 401k rules require the RMD separately distributed from the 401k; therefore, the solo 401k RMD must be taken from the solo 401k. What is more, if you have multiple 401k plans (e.g., a day-time employer 401k and a self-employed solo 401k), the IRS RMD rules also require separate distributions from each 401k plan.
