Q. May an individual with several Individual Retirement Accounts (IRAs) calculate the required minimum for each IRA and withdraw the aggregate of those RMDs from one or more IRAs or must the minimum be withdrawn from each IRA that the individual owns?
Rev. 03/21/02, Revised 10/10/08, E-mail Alert 2008-13

A. According to IRS Notice 88-38, the owner of two or more IRAs may use the "alternative method" to satisfy the minimum distribution requirements by taking from one IRA the amount required to satisfy the minimum requirement for another IRA(s). To do so, the IRA owner must calculate the minimum for each IRA separately, total the minimum required amount for each IRA, and then withdraw that total amount from any one or more of his/her IRAs. Please note that Notice 88-38 only applies to IRAs; therefore, each qualified plan must distribute a participant’s required minimum.

Further, the IRS also permits 403(b) RMDs to be aggregated and withdrawn from any one or more 403(b)s. However, the IRS does not permit the aggregate of IRAs to be aggegated with the aggregate of 403(b)s [and taken from just an IRA or 403(b)].