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RMDs From Multiple IRAs and 401(k)s What if I have several IRAs and 401(k) plans?

Many seniors believe that RDMs are calculated the same way for multiple accounts, but that is not the case.

If you have several IRAs then your distributions will be calculated separately, though you may withdraw from any of your accounts. In the case of 401(k), calculations will similarly be made for each, but you must withdraw from each, separately.

This is why most 401(k) administrations, but not all (so watch out!) will calculate your RDMs and send them to you automatically. It certainly does help, so you won’t get mixed up. On the other hand, IRA administrations will not, which is why you have to be extra careful with how you handle your money during retirement. Not doing so could see  you facing steep penalties.