Not all retirement accounts follow the same rules for Required Minimum Distributions (RMDs). If you have multiple accounts, it’s important to understand how the rules apply to each one.
Here’s a breakdown by account type:
Traditional IRAs
- RMDs are required starting at age 73 (as of 2025).
- The amount is based on your December 31 account balance and your age (IRS life expectancy tables).
- If you own more than one Traditional IRA, you must calculate the RMD for each account, but you can withdraw the total amount from one or more accounts.
SEP IRAs
- SEP IRAs follow the same RMD rules as Traditional IRAs.
- RMDs are required beginning at age 73, regardless of whether you’re still contributing through an employer.
- If you have multiple SEP IRAs and/or Traditional IRAs, you can aggregate them for RMD purposes.
SIMPLE IRAs
- SIMPLE IRAs also follow the same RMD rules as Traditional IRAs.
- RMDs are required beginning at age 73.
- Like Traditional and SEP IRAs, RMDs from SIMPLE IRAs can be aggregated with other IRAs and withdrawn from one or multiple accounts.
Inherited IRAs
- Rules depend on when the original account owner passed away and your relationship to them.
- Under the SECURE Act, most non-spouse beneficiaries must withdraw the entire balance within 10 years of inheritance (the “10-year rule”).
- In some cases, annual RMDs may also be required within that 10-year period.
- Spouses have more flexibility — they may be able to treat the account as their own, delay withdrawals, or follow other options.
Roth IRAs
- Original owners: Roth IRAs are not subject to RMDs during the account holder’s lifetime. This is one reason Roth IRAs are often used in long-term estate and tax planning.
- Beneficiaries: Inherited Roth IRAs are subject to RMD rules. Most beneficiaries must empty the account within 10 years, though distributions are generally tax-free.
Employer Plans (401(k), 403(b), etc.)
- If you have a 401(k) or other employer-sponsored plan, RMDs generally must be taken separately from each plan.
- Some exceptions apply if you are still working past age 73 for the employer sponsoring the plan.
Solo 401(k) Plans
- Solo 401(k)s (also called Individual 401(k)s) are treated similarly to traditional employer-sponsored 401(k)s when it comes to RMDs.
- RMDs are required once you reach age 73, even if you are still working in your own business.
- Unlike IRAs, you cannot aggregate RMDs across a Solo 401(k) and your other accounts. Each plan must satisfy its own RMD.
- If you also maintain Traditional or Roth IRAs, those accounts have separate RMD rules and cannot be combined with your Solo 401(k).
How MidAtlantic IRA Helps
- We calculate your RMD amount for IRAs each year once your Fair Market Values are up to date.
- We provide reminders and processing support so you can stay compliant with IRS rules.
- For inherited IRAs and employer-sponsored plans like Solo 401(k)s, our team can help clarify the distribution requirements based on your situation.