Which date to use for Calculation of RMD for inherited IRA and Roth
I would like to find out the date from which to calculate the RMDs for an inherited traditional IRA and an inherited Roth IRA.
The original owner of the accounts died in 2011 at age 88 and had been taking RMDs on the IRA.
The RMD for the original owner for 2011 was fulfilled.
The accounts were transferred to inherited accounts at the end of January 2012.
The new owner was both the named benficiary at date of death of original owner in 2011, and the named beneficiary on September 30, 2012 on both accounts.
The new owner is an individual, non-spouse beneficiary.
The new owner must now take RMDs on both the inherited traditional IRA and inherited Roth IRA for 2012 based on Table 1, Single Life Expectancy.
The new owner is 49 as 2012, which has a divisor from the table of 35.1.
The question is, do you still use the close of December 31, 2011 balances for both the IRA and the Roth accounts even though they had not been transferred into the new owners name, or use the date of transfer balances? If you use the date of transfer balances, does some kind of split need to be figured for the RMDs?
Thank you for your time and help.
Permalink Submitted by mk foss on Mon, 2012-12-24 17:44
You always use the 12/31 value for IRA (and Roth) RMD calculations.
Permalink Submitted by Joe Martin on Tue, 2012-12-25 15:27
Thank you, for your response.I got myself thinking in circles on the dates (December 31, 2011 balance versus the date the accounts were actually transferred at end of January, 2012) because the balances were a bit higher as of the date of transfer. I wasn’t sure if the accounts still being in the name of the original owner as of December 31 were a sticking point with the RMD for 2012 being that of the new owner. All the examples I had found didn’t specifically state whether this is to be a consideration or not. Or, give a specific deadline by which the accounts had to be transferred in order to use the December 31 balance. Thanks, again.