RMD – take all req from a benef IRA?
Widow has her own Trad. IRA and is listed as the sole Benef. from a SEP IRA from recently deceased spouse. Both were over age 73 and already taking RMDs. She has not yet taken her 2016 RMD from the Trad. IRA, nor did the deceased take his from the SEP IRA.
The SEP IRA is small. Liquidating it would generate enough to cover both the SEP IRA and her own Trad IRA RMD’s for 2016.
If she liquidates the SEP IRA, would that also count towards satisfying her RMD from the Trad IRA she owns? I am thinking these are treated differently and she still must take the RMD from her Trad IRA even if she liquidates the inherited SEP IRA. Just need confirmation from the experts here 😉
Thank you in advance for the help.
Permalink Submitted by Alan - IRA critic on Mon, 2016-08-08 03:04
She should first take the year of death RMD from the SEP IRA, then have it retitled as her own IRA. Finally, she can take her TIRA RMD from the SEP IRA. Obviously, this is not going to come out exactly even, so she would still have a SEP balance OR she would have to take the rest of her RMD from the TIRA. Sounds like the plan is to avoid rolling the SEP over to the TIRA, but if there was still an RMD balance due, then she could roll the SEP over to her own after taking the year of death RMD for the SEP, and then take her total TIRA RMD from the TIRA.
Permalink Submitted by Robert Bracey on Tue, 2016-08-09 01:14
Appreciate the help Alan!