# Retirees Can Avoid 25% IRS Penalty With IRA RMD Aggregation

> Retirees can pull all required minimum distributions from one IRA while leaving others untouched, avoiding costly IRS penalties.
- Title: Retirees Can Avoid 25% IRS Penalty With IRA RMD Aggregation
- Summary: Retirees can pull all required minimum distributions from one IRA while leaving others untouched, avoiding costly IRS penalties. Retirees can satisfy RMDs…
- Keywords: ira, rmd, traditional ira, securities, retirement accounts, irs, tax penalty, retirement planning, Retirees, Avoid, Penalty, Aggregation
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/09/21/he-has-four-iras-and-one-rmd-every-december-he-takes-the-whole-thing-from-a-single-account-and-never-touches-the-other-three-the-irs-wrote-the-rule-itself-and-it-doesnt-work-for-401ks
- Author: David Beren
- Published: 2026-09-21T14:38:36+00:00
- Read time: 1 min
- Topics: ira, rmd, traditional ira, securities, retirement accounts, irs, tax penalty, retirement planning
## IRA RMD Aggregation Rule
The IRS allows pulling all required minimum distributions from one traditional IRA while leaving others untouched.
## How It Works
Calculate RMDs per IRA using December 31 balances and life expectancy factors, then combine totals from one account.
## Why It Matters
Retirees can protect illiquid assets and avoid market timing by pulling obligations from a single cash-heavy account.
## 401(k) Limitation
401(k) plans do not aggregate RMDs and must pay their own obligations from their own assets.
## Inherited IRA Rules
Inherited IRAs only aggregate with other inherited IRAs from the same decedent and within the same type.
## 25% IRS Penalty
Missing RMDs triggers a 25% excise tax on the shortfall, reducible to 10% with a two-year correction window.
## Preparation Steps
List all retirement accounts, group into pools, and calculate RMDs per pool by December 31.
## Critical Boundary
Roth IRAs do not have lifetime RMDs, so they do not participate in the aggregation rule.
## Key takeaway

Retirees can satisfy RMDs from a single IRA without touching other accounts to prevent 25% IRS penalties.