Inherited IRA RMD 2020 return with more than 1 account | Ed Slott and Company, LLC

Inherited IRA RMD 2020 return with more than 1 account

Please tell me if this is true as TDAmeritrade now tells me:

I have 2 inherited IRA account from the same decedent. One at TDAmeritrade and one at Fidelity. In Jan of 2020 I took the entire RMD(adding the 12/31/2019 balances from both accounts) from the TDAmeritrade account, nothing from the Fidelity account.

Now TDAmeritrade is telling me I can only redeposit the calculated RMD using the balances at TDAmeritrade which is about 50% of the amount I took out, even though I calculated the RMD using both accounts and just took it from one account.

I read about this RMD stuff on this board and saw nothing about this situation. I thought that to figure the RMD you add up all the inherited account balances for the same decedent, and then could take it from any of the inherited accounts.

I'm confused.

You can aggregate inherited IRA RMDs as long as the accounts were inherited from the same original decedent, ie neither account had already been inherited before you inherited. Due to inherited IRA aggregation rules, the full amount you distributed is treated as the RMD, but you might have to show TD evidence of what the other inherited IRA RMD was. With such evidence they should accept the full roll over, and they are the only one that can since they are the only "distributing" IRA account. In short, it should not matter that they distributed some RMD money based on other accounts. The same would hold true for an IRA owner using the aggregation rules. Do they understand that non spouse beneficiaries of the same original decedent also can aggregate RMDs. It's in the IRS Regs.

 

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