RMD for deceased person
My client passed away 2005. Beneficary did not claim money till 2011. According to articals written by Ed Slott we can make up past due RMD and roll the remainder to a beneficary IRA for his son. The insurance co holding the assett will not relaese the funds, and want’s to send lump sum to the beneficary. Would appreciate you advice on this matter. thanks, Bruce Cohen
Permalink Submitted by mk foss on Thu, 2011-06-23 21:37
The custodian of am IRA can set rules more stringent than what IRS requires, this may be what is happening to your client.
He cannot roll the funds to a beneficiary IRA if a check is made payable to him.It sounds like the custodian is using the five-year rule which could be specified in the custodian’s agreement. You need more information in order to determine if what they are doing is correct.
Permalink Submitted by Alan Spross on Thu, 2011-06-23 23:03
In the event the insuror’s IRA agreement does not default to the 5 year rule, here is a copy of Ed’s letter reviewing PLR 2008-11028:
http://www.financial-planning.com/fp_issues/2008_7/saving-stretch-613061…