IRA BDA

Submitted by Michael Porfido on Thu, 2015-08-06 22:31

my client has an IRA BDA from when his father died a few years ago. Now his sister has passed away and he was named as beneficiary. Can we transfer this IRA into his existing IRA BDA or does he have to have a separate one?



Submitted by Alan - IRA critic on Thu, 2015-08-06 23:11

He needs to maintain a separate BDA for two reasons:

  1. The title will differ because the decedent’s name must be included and they differ
  2. The RMD divisors will differ because the divisor on his father’s IRA was based on his age in the year after his father’s death and reduced by 1.0 each year thereafter. For his sister’s IRA his divisor will be based on his age in the year after his sister’s death and this will be a different divisor than for the other IRA because the single life table reduction each year is less than 1.0.

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