Last RMD for Successor Owner
My client must take her last IRA distribution from a Successor Beneficiary IRA. However , because of market volatility the 12/31/2021 balance is higher than it is today. I am assuming we just take the full balance and close the account. Is this correct?
Permalink Submitted by Alan - IRA critic on Tue, 2022-02-01 20:58
Yes, if the RMD in any year is more than the account balance, a full distribution must be taken and the RMD will be treated as satisfied. Of course, the client does not have to act until year end and by that time the balance could possibly exceed the RMD amount. That said, with the remaining balance being very small, most people would still close it out.