Inherited IRA
I understand that valuation is used as of 12-31-07 for determination of withdrawal. Taking into consideration what the market has done recently, the withdrawal will have to be alot more than the account vaue is today. Thereby, taking a bigger bite out of a clients investment. Due to recent turmoil in the market, is there a possibility that the IRS will allow the Inherited IRA beneficiary to use alternatative valuation date as opposed to 12/31/07 figures. Has anybody asked for a private ruling regarding the turmoil that has hit the markets.
Thank you!
Frank
Permalink Submitted by Alan Spross on Mon, 2008-10-13 20:21
I doubt that anyone has submitted a PLR request on this, and the IRS is not authorized to waive RMD rules. However, talk about some RMD relief is circulating in Congress, perhaps as part of another stimulus package, and both Presidential campaigns seem to on this bandwagon as well. Therefore, stay tuned to developments on this issue.
An inherited IRA beneficiary should defer the RMD to year end, because there is no telling whether funds already distributed will be allowed to be restored to the IRA. It is also possible that any relief could overlook inherited IRAs. Hasty legislation has overlooked inherited IRAs in the past.
Permalink Submitted by Janine Janine on Tue, 2008-10-14 17:49
Thank you, Alan, for this info. Please keep us updated as you glean the latest news on this topic.
Thank you again!