Hopefully you have filed form 8606 in tax returns, and they document the non-deductible contributions and your basis.
My experience has been that an IRA designated as a Rollover IRA is simply an IRA that received rolled-in funds from an employer 401(k) plan. (and then possibly received additional IRA contributions) I think there may also be some unique feature where you can roll a Rollover IRA back into a 401(k) in the future if you're still working. But for tax purposes I think "Rollover IRA" and "Traditional IRA" are treated the same. So it should not make any difference to your RMDs. As far as taxes are concerned, your IRAs are aggregated and have a basis, and the RMD distributions are handled as pro-rated amounts coming from the non-deductible and deductible portions. Doesn't matter which account you actually pay the RMDs from. Re. consolidating accounts, I would probably not bother doing that, but it's a matter of personal preference.
As always with tax issues, when in doubt you may want to consult a professional. Definitely if you have not filed 8606 form in past tax returns, you should get help from a professional.
There were suggestions about considering Roth conversions to reduce your RMD exposure. That's a separate matter but would be a good thing to look into. I'm in retirement, pre-RMD years, and I have spent some serious time modeling Roth conversions I can squeeze into pre-RMD years without pushing myself into high tax brackets. There are a lot of other posts that give good perspectives on this and talk about tools people have used for the modeling.
My experience has been that an IRA designated as a Rollover IRA is simply an IRA that received rolled-in funds from an employer 401(k) plan. (and then possibly received additional IRA contributions) I think there may also be some unique feature where you can roll a Rollover IRA back into a 401(k) in the future if you're still working. But for tax purposes I think "Rollover IRA" and "Traditional IRA" are treated the same. So it should not make any difference to your RMDs. As far as taxes are concerned, your IRAs are aggregated and have a basis, and the RMD distributions are handled as pro-rated amounts coming from the non-deductible and deductible portions. Doesn't matter which account you actually pay the RMDs from. Re. consolidating accounts, I would probably not bother doing that, but it's a matter of personal preference.
As always with tax issues, when in doubt you may want to consult a professional. Definitely if you have not filed 8606 form in past tax returns, you should get help from a professional.
There were suggestions about considering Roth conversions to reduce your RMD exposure. That's a separate matter but would be a good thing to look into. I'm in retirement, pre-RMD years, and I have spent some serious time modeling Roth conversions I can squeeze into pre-RMD years without pushing myself into high tax brackets. There are a lot of other posts that give good perspectives on this and talk about tools people have used for the modeling.
Statistics: Posted by rambutan — Tue Dec 23, 2025 6:03 am — Replies 11 — Views 561