Non Spouse Bene IRA withdrawals
I had a client who passes away in Jan 2012 after her RBD. Her 46 year old daughter was her sole beneficiary and rolled the IRA in to her own Bene IRA. She had intended to set up annual withdrawals based on the required amounts, but took a much larger distribution in 2015 for an unexpected expense. Can she still continue on with the life expectancy withdrawals or does the full account value need to be removed by 12/31/2017?
Permalink Submitted by Alan - IRA critic on Mon, 2016-11-28 20:38
She can continue life expectancy distributions. Anyone subject to RMDs can always take out more than the RMD, just not less. Taking out more means that the year end balance will be less and future RMDs will also be less. I assume the daughter did complete the 2012 RMD if client did not do so, and met her beneficiary RMD requirements for 2013-2014.