Inherited IRA RMD’s: 94 year-old IRA Owner – 72 year-old non-spousal beneficiary (adult child)
My client, 94 year-old Traditional IRA Owner died May 26, 2019. Three Beneficiaries: Adult Children of Deceased ages 72, 68, 66. The two younger beneficiaries have taken death proceeds from the IRA in a lump sum; the older, age 72, wants to transfer her portion of the proceeds to Inherited IRA. Whereas the 72 year-old will NOT be taking lump sum withdrawal during 2019 as the other two beneficiaries have done, which would more than account for the 2019 RMD, does she have to take RMD during 2019 or can she begin taking RMD based on her life expectancy during 2020? Thanks in advance for your help!!
Scott R. Bruce
Permalink Submitted by David Mertz on Fri, 2019-08-23 15:00
The year-of-death RMD of the decedent can be satisfied by the beneficiaries in any combination. Since the 68 and 66 year-old beneficiaries have taken sufficient distributions to satisfy the decedent’s 2019 RMD, no distribution needs to be taken in 2019 by the 72 year-old beneficiary. RMDs based on the life-expectancy of the beneficiary begin with the year following the year of death of the deceased IRA participant, in this case 2020.