Inherited IRA RMD – where does it have to come from?
Have a 59 year old client that inherited an IRA from her father 3 years ago, he was over 70.5, and taking RMD’s. For her RMD’s does she have to make the withdrawals from the inherited IRA directly, or just from any IRA she has in order to be compliant with the RMD guidelines?
She is considering strategies that may have liquidity issues, but we don’t want to her to invest in something that won’t allow RMD’s if withdrawals from other non-inherited IRA accounts cannot satisfy the requirements.
Permalink Submitted by Alan - IRA critic on Thu, 2017-05-11 23:02
She must take her beneficiary RMDs from the inherited IRA. It is possible to partition the inherited IRA into two inherited IRA accounts by a partial transfer. She could then take her total RMD for both from just one of those accounts since they were obviously both inherited from the same decedent. Of of course, she could just maintain enough liquidity in the current single account for RMDs to be funded. If she missed taking prior RMDs, she needs to make them up ASAP.