RMD calculation for Inherited IRAs
My client passed away last year at age 92. Her three children have completed direct transfers to each of their own inheritted IRAs. How do I calculate their RMDs for this year? I beieve that since their mother was already taking RMDs it is a different calculation than if she was younger and had not been? Thanks for you help.
Permalink Submitted by Alan Spross on Mon, 2011-11-14 23:27
Their choices are a little different, but either way they are able to take RMDs based on their own single life expectancies using Table I and their ages attained this year. Since they established separate accounts before the end of 2011, they can each use their own age instead of the age of the oldest child. This would also have been an option if their mother had not reached her RBD.
They were also collectively (but not individually) responsible for completing the client’s RMD for 2010 if the client did not complete it. And they inherit any basis remaining in client’s IRA as well, so check for Form 8606 on her recent returns.
Permalink Submitted by Stephen Littenberg on Wed, 2011-11-16 16:18
Thank You.
[quote=”[email protected]“]Their choices are a little different, but either way they are able to take RMDs based on their own single life expectancies using Table I and their ages attained this year. Since they established separate accounts before the end of 2011, they can each use their own age instead of the age of the oldest child. This would also have been an option if their mother had not reached her RBD.
They were also collectively (but not individually) responsible for completing the client’s RMD for 2010 if the client did not complete it. And they inherit any basis remaining in client’s IRA as well, so check for Form 8606 on her recent returns.[/quote]