IRA Transfer After 70 1/2
I know you are not permitted to roll over Required Minimum Distributions, but can someone who is 80 years old roll over her IRA via a direct trustee-to-trustee transfer and then take her Required Minimum Distribution from the IRA at the new custodian? Or does the RMD have to be taken BEFORE the trustee-to-trustee transfer?
Thanks.
JS
Permalink Submitted by Denise Appleby on Wed, 2007-10-10 17:11
JS,
The IRA owner can [url=http://retirementdictionary.com/Transfer.htm%5Dtransfer%5B/url%5Dher IRA to a new financial institution , and then take the RMD from the new –receiving IRA.
By the way, you probably do not want to use the term ‘[url=http://retirementdictionary.com/Rollover-Contribution.htm%5Drollover’[/url]when posing this question to financial institution and others, as the term ‘rollover’ by definition, means taking a distribution and rolling over the amount within 60-days. In such a case, the RMD amount would be included in the distribution and would not be rollover eligible.
On the other hand, a trustee-to-trustee transfer would be used in referenced to a non-reportable transfer/movement of assets.
I know what you mean, but just to play it safe, it may be best to use only the term used by the firms processing the actual transactions