Inherited IRA – Is there RMD in year owner (inheritor) dies?
Daughter inherited IRA from mother and was taking required distributions over her life expectancy. Daughter died this year before taking her 2010 required distribution. Daughter’s husband will inherit this inherited IRA. Does a 2010 distribution have to be taken for the deceased daughter before the inherited IRA is transferred to the husband? Custodian says no, because no distribution can be taken from a deceased person’s account.
Permalink Submitted by Alan Spross on Fri, 2010-09-03 02:56
Custodian is correct.
The 2010 RMD can only be distributed to the beneficiary(s) of the IRA showing beneficiary’s SSN. And to do that the IRA must be retitled in the correct inherited IRA format showing the beneficiary. While there is some flexibility to accomodate custodian processing platforms, the ideal way to title the IRA now is “Daughter’s husband as beneficiary of daughter as beneficiary of mother” with the appropriate names used.