transferring bene. IRA to different custodian
When transferring a beneficiary IRA to another beneficiary IRA with a different custodian, does the current year’s RMD have to be taken prior to the transfer taking place? I believe I’ve heard that it does, but don’t know if that is an IRS rule or just a rule that some companies have.
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2014-05-15 17:48
It is not an IRS rule because the beneficiary has until year end to take out the RMD. And if the beneficiary has inherited more than one IRA from the same decedent, the RMDs can be aggregated in any combination between the two, and for all the custodian knows there could be other inherited IRA accounts. If each custodian required an RMD to be taken, if you change custodians 3 time in a year, that would be 3 RMDs!
Permalink Submitted by Jason Frank on Thu, 2014-05-15 19:23
Good point! I hadn’t thought of the “3 RMD” scenario. Thanks for your help!