RMD for deceased person
We have a client who passwed away on 01/31/10 and needed to take out a $10K RMD for 2010. (He was 89) We are moving the IRA to his wife’s name I started the paperwork and was concerned about the 1099 reporting. Will it be ok to have the $10K come out of her new IRA account? I assume that the 2011 RMD will start over with her factor? (She is 3 years younger than he was.)
I can’t have the $10K come out of his account since 1)He can’t sign the distribution form; 2)The check will be payable to a dead person. I have a call out to their CPA but I wanted to float the problem here.
Permalink Submitted by Alan Spross on Thu, 2010-02-18 20:17
It really does not matter as long as his RMD amount is distributed to her, either as beneficiary or owner. Either way, she gets the right amount of the RMD. The transaction is more transparent if IRA is registered in beneficiary form, she take the RMD as beneficiary and then rolls over the account or has it retitled in her name.
But if she is just going to re title the IRA in her name, the RMD can be issued before or after the title change. You are correct that in 2011 her RMD will be based on the 21/31/2010 value or aggregated with any other IRAs she owns.