RMD OF DECEASED IRA
I had a client who passed in Jan 2014 he did not take his RMD for 2014. The beneficiaries are his two adult children. He has many IRA’s in different institutions can we calculate the RMD based on all and take RMD from one IRA for each beneficiary.Thanks
Permalink Submitted by Alan - IRA critic on Tue, 2014-03-11 16:13
Yes, you can take the total year of death RMD from one inherited IRA, as long as all of these accounts have the identical beneficiary listing of both children, and no others. And if that applies, then these accounts are also combinable by direct transfer. The year of death RMD does not necessarily have to be paid equally to each child, but it causes accounting challenges if it is not paid to the beneficaries in accord to the share each inherited. Separate accounts for each beneficiary can be created anytime prior to 12/31/2015 for 2015 RMDs and beyond using their own life expectancies.