non spouse beneficiary
Father dies at age 75. Leaves IRA to daughter age 50. We set up an inherited IRA with fathers name still on the account and daughter as beneficiary. Does daughter continue the RMD? If so, at father’s rate or based on her own age? If he had been only 65, would she start RMDs when he would have turned 70 1/2, or when she turns 70 1/2 or when?
Thank you.
Permalink Submitted by tomd37 on Wed, 2011-03-30 19:44
As a non-spousal inherited IRA, the daughter is required to start RMDs the year following the death of her father. She uses the value of the account as of the end of the year of his death and her attained age as of the end of the year she takes her first RMD. The factor can be found in Table I of IRS Pub 590. That factor is decreased by 1.0 each succeeding year. The inherited IRA cannot be co-mingled with any other IRA she might hold, nor can she add to it, and nor can she convert it to a Roth IRA. His age has no impact on when she must take RMDs since it is a non-spousal inherited IRA.
If her father did not take his RMD for the year of his death, that RMD must be taken by the daughter prior to the end of the year he passed away.