Retirement Daily Insights on New IRS Aggregation Rules for Your Money and RMDs
New IRS Aggregation Rules Explained
The IRS has introduced new aggregation rules that can significantly impact your retirement planning. If you have multiple traditional IRAs and plan to execute a 60-day rollover or a Roth conversion this year while also being subject to Required Minimum Distributions (RMDs), these changes are critical.
Understanding the RMD Requirements
- RMDs are mandatory withdrawals from your retirement accounts once you reach a certain age.
- These rules dictate how your RMD is calculated when you hold multiple IRAs.
Implications for IRA Rollovers
With these new regulations, individuals who are executing rollovers must be keenly aware of their RMD calculations. B Failure to comply can result in substantial penalties which can erode your financial stability. Therefore, strategically planning your rollovers is essential.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.