Splitting an inherited IRA
My brother and I are co-beneficiaries of my father’s $40k IRA which he inherited from his sister. Our understanding is that we will have to take RMD based on his withdrawal schedule (he was 97). However, we would like to split the IRA so we can invest as each of us pleases. How is that done? Also, can we make contributions from the IRA to charities to avoid additional income?
Permalink Submitted by Alan - IRA critic on Thu, 2018-03-15 18:23
You can do QCDs from an inherited IRA after you reach 70.5 to the day. You can request that the inherited IRA be split by direct transfer into separate inherited IRAs for each of you. Each of your beneficiary RMDs will have to use the divisor your father would have used had he lived so your stretch will be very limited. You should wait until the IRA has been split before taking your 2018 beneficiary RMD. Be sure to name your own successor beneficiaries.