SEP IRA: Q. Re RMD’s and Inherited Roth IRA
1. When the owner of a SEP IRA takes his RMD’s for it and for his traditional IRA, can he consider the 2 as one IRA in calculating his total RMD and then take that RMD from either IRA, or does he have to take a separate RMD from each?
2. Since the SEP IRA is an employer plan, after the SEP IRA’s owner dies can his nonspousal beneficiary directly roll it over into an inherited Roth IRA assuming his MAGI is not too much to prevent this?
Thank you.
Permalink Submitted by Alan Spross on Tue, 2008-06-24 03:50
1) These can be “aggregated”, meaning that the total RMD can be satisfied in any combination over the SEP or straight TIRA.
2) No. A spousal beneficiary could, but not a non spouse beneficiary. A SEP IRA, TIRA or SIMPLE IRA is not an eligible retirement plan with respect to the Roth transfer for a non spouse beneficiary. Most other employer plans would be.