Inhertited IRA RMDs
I have a client that Passed away on March 14,2024 before taking her 2024 RMD. The beneficiary is a Trust. This was not recommendation, but a local Estate Planning Attorney directed her to do so.
Can I move the funds to the Trust Inherited IRA without taking the 2024 RMD by satisfying her RMD with another account? And, if so do I have to take the 2024 RMD from another account before transferring the IRA to the Inherited IRA?
Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2024-06-21 16:21
You must establish the inherited IRA for the trust before any distributions from that inherited IRA can be made. As for the “Other account”, if it is an IRA inherited by other than the same trust, both inherited IRA must receive their proportionate share of the year of death RMD. The rule allowing the year of death RMD to be taken in any combination by the beneficiaries only applies when there is one inherited IRA or more than one inherited by identical beneficiaries.
Therefore, the inherited IRAs can be set up in any order, with the year of death RMD for each inherited IRA satisfied either before or after the other inherited IRA is established. But the total year of death RMD must be completed from each of the inherited IRAs in proportion to their value.