Beneficiary Question
IRA client passes away, his age was 84, and the RMD for 08′ was addressed and distributed to the spouse (as beneficiary) – The remaining assets within the IRA account, then are to be disbursed to the spouses IRA as the beneficiary on the original account…
Once the RMD and withholding for that distribution have been satisfied, on the remaining assets that are to be moved to the spouses IRA, is there any mandatory tax withholding on those assets ?? Being that the assets are going from his IRA to her IRA, I say no…But I am being told differently…
Please help…
Permalink Submitted by Alan Spross on Wed, 2008-05-14 23:12
IRA distributions carry a default withholding rate of 10%, however, the owner can change that or opt out of any withholding by filing a Form W-4P. There is no mandatory withholding on IRA distributions, RMD or otherwise.