Inherited IRA- RMD
I have a client that will be rolling over her inherited 457 b plan to her inherited IRA. Should she take the required RMD before rolling over or are we able to wait until funds come to the inherited IRA to take the RMD before year end. I know when it comes to regular accounts there are rules with RMD when it comes to 401k and 457 b.
Permalink Submitted by Alan - IRA critic on Fri, 2023-06-09 14:55
The RMD for the inherited 457b must be distributed by that plan prior to the direct rollover to an inherited IRA. This is the same requirement for participants. If the 457b RMD is not distributed, part of the rollover is treated as the RMD and becomes an excess contribution to the inherited IRA.