Non-spouse RMD calculation
Father died 2 years ago, leaving IRA to mother. Mother died in November 2015 at age 69, leaving IRA to four kids – which was distributed to individually titled inherited IRA accounts in July 2016.
What is the account value that you would use to calculate the RMD for 2016? 25% of IRA account value on 12/31/15?
And they can use individual life expectancy tables since they split it before September, correct?
Permalink Submitted by Alan - IRA critic on Tue, 2016-11-08 17:40
Correct that 25% of the total account balance on 12/31/2015 would be used to calculate their RMDs. However, it must be determined whether the children were designated beneficiaries or successor beneficiaries. How old was father at the end of 2014 if that was the year he passed? If mother did not roll this over to her own, she still might have become the owner by default if she failed to take her 2015 beneficiary RMD if one was required. These questions must be answered to determine whether the children can use their own ages or must continue to use mother’s RMD schedule.