RMD calculation for beneficiary IRA
My mother-in-law’s accountant is telling her that she needs to calculate her RMD for her Beneficiary IRA base on all of her IRA’s (she has 2 others). She is not yet 70 and 1/2. Is what her accountant telling her correct, or is there a specific portion of the tax code that covers this. I’ve looked in IRS pub 590 and cannot find an example. Thank you for your input.
Permalink Submitted by mk foss on Wed, 2010-10-06 18:20
You cannot combine beneficiary IRA balances with other IRAs to determine RMDs. If there’s more than one IRA inherited from the same person, you can combine those. You use the single life table for determining RMDs for inherited accounts.
When she begins taking her own RMDs, she will use the uniform table and combine all of the balances of the IRAs she owns. This rule should be in IRS Pub. 590. The regulations spell out the rules. See Reg. 1.408-8 Q&A 9.