Multiple Beneficiaries on Inherited IRA
My mother passed away in Dec 2007 (she took her RMD for 2007) and there were 6 kids as beneficiaries. The funds will be transferred to 6 Inherited IRAs next month. Will the RMD be based on the market value of mom’s IRA on 12/31/07 divided by 6 or the amount each beneficiary actually receives?
Permalink Submitted by Alan Spross on Thu, 2008-03-27 20:10
The former. The likely declines in market value since 1/1 have no bearing on the RMD requirement.
Remember to name successor beneficiaries. Technically, this should even be done prior to setting up the separate accounts to avoid having a deceased beneficiary’s share going to their estate and becoming subject to probate. Waiting vrs acting should be weighed against the size of each share.