Rollover IRA RMD Rules — How Rolled-Over 401(k) Funds Are Treated

How do RMD rules work for a rollover IRA?

A rollover IRA — created by rolling funds from a 401(k), 403(b), or other employer plan — is treated exactly like a traditional IRA for RMD purposes. Once the funds are in the rollover IRA, the more flexible IRA aggregation rules apply: the balance aggregates with any other traditional IRAs you own, and the combined RMD can be taken from any one account.

This is one of the primary tax planning advantages of rolling an old employer plan into an IRA. Instead of managing separate RMDs per 401(k) plan, the rollover IRA combines into your IRA RMD pool, simplifying both calculation and distribution.

If you roll a 401(k) into an IRA after your RMD start age, you must take any required 2024 RMD from the 401(k) before completing the rollover — RMD amounts cannot be rolled over.

Key RMD Rules

• 1Rollover IRA follows traditional IRA RMD rules — same age, same table, same deadlines.
• 2Aggregates with all other traditional, SEP, and SIMPLE IRAs for the combined RMD.
• 3You cannot roll over an RMD amount — take the RMD from the 401(k) first, then roll the remainder to the IRA.
• 4No 60-day clock restart needed for direct rollovers (trustee-to-trustee transfers).
• 5Once in a rollover IRA, you gain the IRA aggregation flexibility that 401(k) plans do not provide.

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