Ed Slott's top-10 RMD mistakes: rollovers, aggregation and a double-RMD trap

An IRA owner who turns 73 and delays the first required minimum distribution to April 1 of the next year owes two RMDs that year, according to Ed Slott's top-10 list. The delayed distribution is due by April 1 and the regular one by Dec. 31. That double bill is No. 5 on the list, published by IRAHelp on Oct. 14.

Slott lists missing an RMD entirely at No. 2; a missed or partial distribution can draw a 25% penalty if the error is not identified and corrected in time. At No. 1, Slott puts calculation errors, which require the proper life expectancy table, age and balance and apply to every account that carries an RMD.

Slott's No. 10 covers the rollover trap: RMDs cannot be rolled over, and the problem shows up most often when company plan assets move into an IRA. If the plan RMD is not taken before the rollover, the IRA ends up holding an excess contribution that needs correcting.

No. 3 is aggregation: a client's own IRAs can be combined to satisfy an RMD, but IRAs and 401(k) plans cannot be combined with each other. No. 9 is the related trap for couples: one spouse cannot take a distribution to cover the other's RMD, even when the two file a joint return and report the correct total.

The still-working exception at No. 6 delays RMDs from a workplace plan, but only for a plan at a current employer. It also applies only to someone who does not own more than 5% of the company, with family ownership counted. It does not apply to IRAs or to plans at companies where the client no longer works.

No. 4 is a planning point for charitably inclined clients: the annual qualified charitable distribution limit for 2026 is $111,000, and it is not capped by the size of the RMD.

An illiquid IRA holding is not an excuse for missing a distribution. Taking more than the RMD in a prior year does not remove this year's obligation; it lowers the year-end balance and therefore the calculation, but an RMD still exists.