Do I Have To Report The Distribution as a RMDs?
I took the required distributions on the IRAs I inherited from my mother.
I know I need to report the gross distributions and taxable amounts, however, do I need to report that they were RMD anywhere like on form 5329 or do I just keep that information for my own records?
Thanks.
Lynda
Permalink Submitted by Alan Spross on Tue, 2008-04-08 19:26
There is no need to break down distributions between RMDs and additional amount you choose to distribute.
It may be a good idea to keep your own inherited IRA file showing the RMD you took each year and your divisor will be reduced by 1.0 each successive year. You should also determine as early as possible if there is any basis in your inherited IRA that your mother did not recover, and you would use Form 8606 to report the basis and apply the correct percentage to each year’s distributions. Finally, be sure you name your own successor beneficiary on the account and be aware that you cannot roll over the funds since they can be moved only by direct trustee transfer if you wish to change IRA custodians.
Permalink Submitted by Lynda Gold on Tue, 2008-04-08 21:29
What does this mean:
they can be moved only by direct trustee transfer if you wish to change IRA custodians.
Permalink Submitted by Al Fry on Tue, 2008-04-08 22:00
It means you cannot remove the assets from the IRA personally and put them in another IRA. Non-spouses can never do a rollover, only trustee-to-trustee transfers if they want to change custodians.