Non_spouse Ira bene/RMD withdrawal confusion
Ok, my mom died in June of this year. She was 73. She was taking out her rmd on a monthly basis. She took out 2k. Another 2k should have been taken out but of course, she died and was unable to do so.
As the sole beneficiary, I have until dec of next year to decide my RMD
withdrawal schedule, though will decide sooner.
Here’s my problem. I am supposed to take out the 2k that my mom did not take out by the end of this month but nowhere on the bank distribution form for Traditional IRA does it allow me to do this.
On the form I have two options highlighted:
1) In monthly or Quarterly or Semi annual or Annual Installments beginning on_____or as soon after that as is reasonably possible. I wish to have the installments calculated as follows (choose one)
the other option they give me is
2) Receive installments over my life expectancy as of Dec 31 of the year following the year of the individual’s death using my age as of my birthday in the year following the year of death reduced by one each year thereafter.
So if my RMD will be 3k next year, how in the hell do I take out the 2k that my mother should have taken out this year?
Is it possible to do this without starting my RMD prematurely?
Any help would be highly appreciated. Thanks in advance.
Permalink Submitted by mk foss on Mon, 2008-12-15 01:14
It sounds like they gave you a form for a beneficiary (for YOUR distribution starting next year) and not the form for the owner of the account. You may have to call them to get your Mom’s distribution or get another form from them.
Sometimes when you call a custodian you have to go through successive layers of personnel before you get one that understands the requirement that you’re faced with.
Good luck!
Permalink Submitted by JAMES MAGNO on Mon, 2008-12-15 15:10
Mike-
To put this in perspective, in general you can always withdraw amounts in excess of the required min distribution. As beneficiary, you should deliver a written instruction for the bank or institution to distribute $2000 to you before 1/1/09. Talk to someone – don’t rely on the forms. The forms are nice because for 2009 etc you will be on auto distribution just like your mom. Again in the future years you should be able to take extra amounts in excess of the RMD – unless you create an annuity contract.
Jim
Permalink Submitted by mike fisher on Mon, 2008-12-15 16:22
[quote=”[email protected]“]Mike-
As beneficiary, you should deliver a written instruction for the bank or institution to distribute $2000 to you before 1/1/09. Talk to someone – don’t rely on the forms.
Jim[/quote]
Thanks Jim. It hasn’t been for lack of trying. I will give it another shot today. I am dealing with a Major Bank that does not train its employees on this type of procedure. My biggest fear is that they cash in the entire account which is what I don’t want.