Combined inherited spousal IRA and own IRA, now what is RMD?
Client had both an inherited spousal IRA and her own IRA. We combined them to lower RMD this year.
In calculating the RMD that must be taken this year, do we just add the two year-end 2017 values and use Table B – Uniform Lifetime Table. Does it matter that there was inherited IRA that would mandate a higher RMD?
Thanks for your help, Leslie
Permalink Submitted by Alan - IRA critic on Thu, 2018-03-15 15:48
As long as the spousal rollover did not occur in the year of death, then the inherited IRA is treated as if it was owned the entire year of the spousal rollover. Therefore, you would add up the prior year end balances and use the Uniform Table to determine the RMD divisor. Note that even if client had taken a distribution from the inherited IRA before electing ownership of it, that distribution would be credited toward the total Uniform Table RMD, however this is not recommended because having an additional 4 coded 1099R would likely to confusing for the IRS.