Non Spouse Inherited IRA
The case involves a non-spouse who’s deceased partner has left a inherited IRA account. If he completes the transaction in the year of 2007, must he take a RMD for the year 2007?
The case involves a non-spouse who’s deceased partner has left a inherited IRA account. If he completes the transaction in the year of 2007, must he take a RMD for the year 2007?
Permalink Submitted by Al Fry on Mon, 2007-11-19 20:38
Was it an inherited IRA with the deceased as owner, or was it a Traditional IRA (TIRA) owned by the decedent?
Permalink Submitted by Jeff McKay on Mon, 2007-11-19 20:48
It originally was a 403(b) plan rolled over to a Beneficiary IRA.
Permalink Submitted by Al Fry on Mon, 2007-11-19 21:09
Was the beneficiary IRA owned by the decedent?
Permalink Submitted by Jeff McKay on Mon, 2007-11-19 21:14
It was a 403(b) plan that was owned by the deaceased. Our client is the beneficiary of the plan. We are rolling over the 404(b) plan to a beneficiary IRA.
Permalink Submitted by Al Fry on Mon, 2007-11-19 22:15
If the decedent was past their RBD, died in 2007, and had not yet taken their RMD for 2007, then it must be removed and paid to the bene first. Then the balance can be rolled over. If the decedent died in 2007, then the bene does not have to take a distribution (death RMD) until 2008. If the decedent died in 2006, then the death RMDs would have to be started by 12.31.2007.