Post Death RMD – Multiple Beneficiaries
I was told that there was a recent change to the RMD rules that require the RMD of the original account owner( from an IRA not qualified plan), for the year of death, MUST be pro rated among all beneficiaries? It was my understanding that as long as the RMD was satisfied by 12/31 of year of the original owners death it didn’t matter which beneficiary satisfied it. (1.401(1)(9)-5, A-4(a). )
Also, is there a requirement that the original account owner’s RMD for year of death MUST be withdrawn prior to transferring the remaining assets to their inherited IRA, or can they transfer the entire account and then withdraw the original owners RMD from their inherited IRA as long as this occurs by 12/31 of year of death.
Permalink Submitted by Alan Spross on Sat, 2008-06-14 00:33
I am not aware of any such change. Some custodians may wish there were such a rule so that they would not have to account for how much was distributed to each beneficiary.
With respect to a transfer of custodians or setting up separate accounts, the aggregation rules that apply to IRAs should eliminate the need for any such distribution timing rule for any particular IRA account.