inherited ira transfer rmd requirements
scenario.. Jim passes away and leaves his ira to his son. it is currently held by insurance company A. company A will do a 5 year payout of 100,000 at 20,000/yr and transfer the money to company B so that the beneficiary can do a stretch. the question is… 1) if the client has multiple inherited iras, can the rmd be taken from any of the iras or does it have to come out of each individual ira? 2) if the total rmd can be aggregated and taken from one ira as per tax facts #233, can company A send the transfer before taking the rmd out and let the client take out the rmd from company b after the transfer occurs (as long as it is taken within the year)?
Permalink Submitted by Alan Spross on Thu, 2010-08-19 22:24
1) Inherited IRA RMDs can be aggregated as long as they are all inherited from the same decedent.
2) Yes. A direct transfer from IRA to IRA is NOT considered a distribution, and therefore can be done without consideration of RMDs. For a non spouse IRA, funds cannot be moved by indirect rollover in any event and that is even a larger reason to make sure the 20,000 is NOT distributed and moved only by direct trustee transfer.