Determining RMD for non-spouse beneficiary
I have a client who is one of 4 siblings. Their mother died this year leaving a Traditional IRA in which each child receives $70,000. Mother had already began RMDs. If my client (age 48) took a lump sum of $40,000 this year but wishes to rollover the remaining $30,000 into an Inherited IRA will she be subject to RMDs in 2016? If so, is it based on the $70,000 value or the remaining $30,000? Thank you.
Permalink Submitted by Jose Morales on Fri, 2015-07-03 18:09
Your client does not have the option of rolling over the $30,000 to an inherited IRA. The $30,000 can only be moved to an inherited IRA by an IRA to IRA Transfer. The RMD for next year will be determined by the year end value in the inherited IRA as of 12/31 of this year.