IRA RMD

Submitted by Patrick Doyle on Wed, 2012-12-19 18:36

My client died in Nov 2012 at age 83 and didn’t take any of his RMD’s.for this year. All his IRA’s had his wife as beneficiary but one. That one IRA has his Family Trust as beneficiary. My question is can we take the RMD for this account out of the other IRA’s that have been transfered to his wife even though the beneficiary is the trust?



Submitted by mk foss on Wed, 2012-12-19 18:58

The RMD can be satisfied from any account. Were the decedent’s RMDs withdrawn before the IRAs were transferred to the surviving spouse? If she withdrew more than the RMDs from all of his accounts, everything is fine.

Submitted by Alan - IRA critic on Wed, 2012-12-19 19:48

  • Natalie Choate recently did an article for Morningstar on similar issues. See Situation # 1 in the article which appears similar to this one, ie “multiple IRAs with different beneficiaries”:

http://www.morningstar.com/advisor/t/68264867/rmd-conundrums.htm

  •  Her conclusion appears to be that in your client’s case the trust must take the year of death RMD for it’s IRA but the surviving spouse could aggregate the year of death RMD over the IRAs she inherited directly.    

 

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