Consolidating multiple iras
What happens when you or your client inherits more than one IRA? Do you have to take required minimum distributions (RMDs) from each account separately or can the distributions be aggregated?The answer will depend on who the inherited account came from as well as what type of account it is.Most employer-sponsored plans are severely limited in terms of available investment options.Don’t overlook the fact that having to manage multiple IRAs can present you with a significant administrative burden.
Generally, RMDs from employer plans must be taken from each employer plan separately. They can be combined just as the inherited IRA distributions can be combined as described above.
If you later inherit an IRA from Mom who had inherited it from Dad, this IRA comes from Mom, not Dad.
It cannot be combined with those IRAs inherited directly from Dad.
An RMD for an IRA inherited from Dad cannot be taken from an IRA inherited from any other person.
You can never combine inherited retirement accounts of different types.
Unfortunately there are a number of downsides to maintaining multiple retirement accounts.