RMDs from 2 different IRAs with different beneficiaries

[origun]

Taxpayer has 2 IRAS, one with wife more than 10 years younger as beneficiary so has to use Table 2 to compute RMD. Other IRA has adult child as beneficiary so uses Table 3 to compute RMD. Can taxpayer take the total RMD from either IRA or does he have to take the one calculated from Table 2 from that IRA and the one calculated from Table 3 from that IRA?

I know the general rule is that once RMDs are calculated and totaled, the total amount can generally be taken from any or all of the IRAs...but does that hold true when different beneficiaries require different calculations?

[Roland Slugg]

Although it seems counter-intuitive to me, it appears you can take the entire distribution from any one account, or from any combination of the two. Here's a quote from IRS Pub. 590:

More than one IRA. If you have more than one traditional IRA, you must determine a separate required minimum distribution for each IRA. However, you can total these amounts and take the total from any one or more of the IRAs.

This comes from the top of page 39, and there is an example that follows, although in the example both the spouse and the non-spouse of the T/P's two IRA accounts are within 10 years of the taxpayer's age.

Since the combined distribution can apparently be withdrawn from either account, the RMDs can actually be slowed down by taking them entirely from the account subject to the faster withdrawal rate ... i.e. the smaller annual divisor. This might also produce an unfair result for the beneficiaries if, say, the entire RMD is taken from one bene's account instead of proportionately from both. Accordingly, the IRA owner should be made aware of this potential inequity and the affect it could have on his spousal and non-spousal benes.

Added comment: I have long thought that IRS Pub 590 is very poorly written, so last year I wrote to the IRS citing several examples of the Pub's shortcomings and suggesting it be completely re-written. We shall see if those suggestions yield any results.