Death in 2016 / RMD in 2017
Client, age 75, died in 2016. Client satisfied 2016 RMD in 2016. Her two kids are the primary beneficiaries of the IRA. The proceeds of the IRA remain in the deceased’s Traditional IRA account. Both beneficiaries plan to rollover their share of the proceeds to an inherited IRA in 2017.
Is the RMD for the two beneficiaries in 2017 based on the deceased client’s age on 12-31-2016 OR is it based on the age of the two beneficiaries on 12-31-2016?
Thanks!
Permalink Submitted by Alan - IRA critic on Wed, 2017-01-04 20:47
Each beneficiary will calculate their 2017 RMD using the single life table and their age as of 12/31/2017. However, if they fail to establish separate inherited IRAs by direct transfer by the end of 2017, the RMD for both will have to be calculated using the age of the oldest beneficiary.