ira
Ira account holder left , $900,000. ira to his estate. Ira beneficiary was his estate. His three daughters were the only estate beneficiaries, 1/3 each. Can they roll their portion of the ira into an inherited ira and take rmds over their life?
Ira account holder left , $900,000. ira to his estate. Ira beneficiary was his estate. His three daughters were the only estate beneficiaries, 1/3 each. Can they roll their portion of the ira into an inherited ira and take rmds over their life?
Permalink Submitted by Alan Spross on Thu, 2010-02-04 18:21
No.
Options:
1) If IRA owner died PRIOR to his RBD, the 5 year rule applies. The IRA can still be split and assigned to each beneficiary, but the 5 year rule will still apply to each inherited IRA account.
2) If owner died on or after the RBD, the assigned inherited IRA accounts can be distributed over the Table I non recalculated (divisor less 1.0 each year) life expectancy of the owner using age in the year of death. RMDs using this divisor less 1.0 must start in the year following owner’s death.
Beneficiary ages are immaterial.