Inherited IRA
I have a client with $250k in an inherited IRA that she inherited two years ago and is now 70 yrs old. If she splits that account into two completely different products is she required to take the RMD from each or can one of them satisfy the requirement? The IRA split will have different account numbers because one will be an annuity and the other investment funds.
Permalink Submitted by Alan - IRA critic on Thu, 2013-03-21 02:21
If the inherited annuity is annuitized, the annual payments will satisfy the RMD for that contract and the other IRA account with the year end balance will have to distribute it’s own RMD. If the annuity is not annuitized, then the RMDs can be aggregated between the two in any proportion.