Decedent IRA
I have a potential client that is the custodian/bene on two decedent IRA’s, both are being distributed from.
Can you combine them into 1 IRA or annuity?
After 5 years of distributions, (the deceased passed in 01) can the client take out the money in a lump sum?
Permalink Submitted by Alan Spross on Wed, 2007-12-19 00:40
He would just be the beneficiary, not the custodian. He could combine the accounts, but should not do so unless his RMD divisor is the same for both. There are a few special cirmumstances that could make his divisor different for these accounts, and if he wants to maintain the lower distribution rate, he should not combine with an inherited IRA with a higher distribution rate.
A client can always drain an inherited IRA or take more than the RMD requirement in various years, that is unless his benefit has been annuitized.