Inherited IRA Establishment Date
Hello,
If an individual passed away earlier this year who had not begun RMD’s (younger than 70 1/2) and whose IRA is being left to a child, what is the time deadline by which the Inherited IRA must be established AND funded?
Is it 9 months from the date of death (when estate tax returns must be filed)?
Is it Sept. 30th of the following year (2013)?
I know that the first RMD will be required by 12/31/13; however, I want to make sure the actual Inherited IRA gets established AS WELL AS funded by the required date?
Thanks.
J
Permalink Submitted by Alan Spross on Thu, 2012-11-01 18:11
There is no set deadline. If there were other beneficiaries, the deadline to establish separate inherited accounts for RMD purposes would be 12/31/2013. And for that first RMD to be distributed, a correctly titled inherited IRA will be needed.
The IRA agreement and state law must be considered in determining the title of the inherited IRA format. A financial custodian for the minor is also a requirement until they reach the age of majority.