One RMD Plan for Many Accounts: A Practical Workflow

Multiple pre‑tax accounts can make RMD season stressful. This checklist reduces errors, aligns withdrawals to cash‑flow needs, and respects aggregation rules.

Annual Workflow (Step by Step)

1. Inventory accounts by type (IRA, 403(b), 401(k)), custodian, balance as of prior 12/31
2. Pull factors from the correct table: RMD Factor Table
3. Calculate each account’s RMD; note which can be aggregated (IRAs together; 403(b)s together)
4. Decide which custodian(s) to withdraw from—consider fees, convenience, and cash needs
5. Set withholding vs. estimates: Withholding vs. Estimated Taxes
6. Document confirmations and keep a simple “RMD map” file for the next year

Aggregation Rules (Quick)

• IRAs (incl. SEP/SIMPLE) can be aggregated and taken from any one or more IRAs
• 403(b)s can be aggregated with other 403(b)s
• 401(k) RMDs must be taken separately from each plan

If you have both an IRA and a 403(b), you cannot aggregate across those two buckets.

Cash‑Flow Alignment

• Use monthly distributions if you want a paycheck feel
• Combine RMDs with interest/dividends to keep cash bucket full
• Create a 12‑month calendar: see Build a 12‑Month Cash‑Flow Calendar

Example

Noah has 2 IRAs at different custodians, one 403(b), and one old 401(k). He aggregates the IRAs and takes the entire IRA RMD from the lower‑fee custodian, aggregates the 403(b)s (only one in his case), and takes the 401(k) RMD separately from the plan. He sets December withholding to hit safe harbor.

What to Do Next

• Calculate RMDs: RMD Table Calculator
• Verify rules per account type: RMD Aggregation Rules
• Plan cash timing: RMD Cash‑Flow Calendar