Inherited IRA & Inherited Qualified Deferred Comp received in same year – RMD
I inherited a non-spousal IRA and non-spousal qualified deferred comp plan in 2022. Can I take the calculated combined 2023 RMD from one of the accounts or do I need to calculate and take an RMD from each account?
Thanks.
Permalink Submitted by David Mertz on Fri, 2023-08-11 17:02
The RMD for an inherited IRA must be satisfied with a distribution from the inherited IRA and the RMD for the deferred compensation plan must be satisfied with a distribution from the deferred compensation plan. Assuming that deferred compensation plan is a qualified plan (most likely since nonqualified plans do not have statutory RMDs, only possible plan-required distributions) and inherited from the same decedent, after satisfying the RMD for the deferred compensation plan the balance in the deferred compensation plan could be directly (not indirectly, a non-spouse beneficiary is not permitted to do an indirect rollover) rolled over to the inherited IRA and in future years there would be only one inherited account from which the RMD would be need to be taken.