inheriting an IRA-BDA
My wife inherited an IRA from her sister who passed away in 2007. She opened a IRA-BDA with the RMD due prior to 12/31/2008. Before taking the RMD my wife passed away in October 2008 with me as beneficiary. Will I in turn be able to open an IRA-BDA and what RMD’s will be due and when.
Permalink Submitted by Alan Spross on Sat, 2008-12-06 05:29
My condolences on your loss.
You should submit a death certificate to the IRA custodian and have the IRA re titled in the following format:
“dmckenna as beneficiary of (wife), beneficiary of (sister)”
Your RMD schedule will be the same as your wife’s would have been based on the age she would have attained at year end 2008. Use the single life table. Take the first RMD by year end, then reduce the divisor by 1.0 for 2009 and each year thereafter. Also remember to name your own succesor beneficiary.
You can move the funds to a different custodian only be direct trustee transfer. No rollover is permitted.
Permalink Submitted by Desmond McKenna on Sat, 2008-12-06 06:05
Alan, thank you for your quick reply. The information you provided is very helpful. Thanks again.