RMD
Client has an IRA and a Profit share and turned 70 1/2 in 2010. Client took an RMD from IRA big enough to satisfy the amount from both IRA and PS.
My understanding is that you cant satisfy PS RMD with IRA distribution. ie IRA cannot be aggrgated with PS.
If thsi is correct there will need to be an RMD from PS and in the meantime she will have taken too much from IRA.
Can any go back into IRA? Client retired a number of yrs ago and the PS is from a loarge comapny.
What can be done to minimize income ? ( I realize she can defer PS until 2011)
Permalink Submitted by Alan Spross on Tue, 2010-12-07 23:04
Your understanding is correct, and any IRA distribution in excess of the actual IRA RMD taken within the last 60 days could be rolled back to the IRA, but otherwise client is stuck with the full IRA distribution.
If the amount is large enough, client could consider requesting a letter ruling extending the 60 day period for rolling back the excess amount above the actual IRA RMD.