RMD Beneficiary IRA
Client inherited her mother’s IRA. Her mother was 60 and began taking some distributions in 2007. Does the Beneficiary have to take her RMD’s based on her life expectancy or her mother’s life expectancy since her mother was taking distributions ( Albeit NOT RMD’s ) prior to death.
Permalink Submitted by Alan Spross on Tue, 2008-12-09 19:39
Non RMD distributions taken by the owner are immaterial. The owner passed prior to her RBD, and therefore there is no RMD required of the client before 12/31 of the year following her mother’s death if she elects life expectancy distributions. The client would then use her age in the year following her mother’s death to determine the RMD for that year. The single life table applies.
Client could also elect the 5 year rule, but there is rarely any benefit to that option.