Double Inherited IRA
My father, age 97, recently died and left me beneficiary of the IRA he had inherited from his equally aged sister. Is there any way to extend the IRA RMD? Is there any way I can defer it to my 2 kids who could really use the money? I know I could gift it, but after paying my tax rate, that takes out a big chunk of change. Fortunately, everything else transferred on a POD/TOD to my brother and myself.
Permalink Submitted by Alan - IRA critic on Wed, 2018-02-28 22:59
There is probably very little time left on this IRA, if any. Would have to know his age at the end of the year he inherited this IRA from his sister, and also her age at the end of that year to determine the remaining RMD divisor. You would then have to continue his limited RMD schedule as would anyone else who inherited this IRA. If you were the only beneficiary on this IRA and you filed a qualified disclaimer, the IRA would then go to his estate and the beneficiaries under his will. If you are one of those beneficiaries, then you cannot disclaim without also disclaiming as a will beneficiary.