12/31 Balance for New Beneficiary IRA
Grandpa passed away last year but the assets weren’t transferred to 4 beneficiary IRAs until this yar. For purposes of calculating beneficiary IRA RMD for this year, since the individual beneficiary IRAs themselves do not have a 12/31 balance, do we use one-fourth of the balance that was still in the decedent IRA on 12/31 oof last year?
Permalink Submitted by Alan - IRA critic on Fri, 2023-02-24 01:46
Yes, if each beneficiary inherited 25%. If decedent did not complete his 2022 RMD, the beneficiaries are also responsible for doing so, and can do so in any combination among the beneficiaries. Beneficiaries do not have to take annual RMDs in years 1-9 of the 10 year rule if decedent passed prior to his RBD.
Permalink Submitted by jmemeier on Fri, 2023-02-24 15:18
Thank you!