Son dies 11/7/06 with father (dob 2/19/31) as bene of his QP
This is my first Non spouse rollover. Inherited IRA has been established. Fund deposit from qualified plan is imminent. What are the rules for RMD for dad?
This is my first Non spouse rollover. Inherited IRA has been established. Fund deposit from qualified plan is imminent. What are the rules for RMD for dad?
Permalink Submitted by Alan Spross on Thu, 2007-10-04 21:46
His first RMD is for 2007 and based on his single life expectancy. Since his age upon his 2007 birthday is 76, the divisor would be 12.7. However, the QRP must withhold that amount from the direct rollover to the IRA, and distribute it to the father. That means that the first distribution from the inherited IRA will be in 2008 using a divisor of 11.7 (12.7 is reduced by 1.0 for each successive year).
It is good that the QRP will issue the transfer, because this is not yet mandatory. If they balk for any reason, there is pending legislation in Congress that WOULD make it mandatory.