RMD for Deceased account
I have a client who recently died before his RMD for 2018. His wife is beneficiary. The custodian, TDAmeritrade will not let release the RMD. They want her to put the IRA in her name and then take the distribution. That seems like they (TDA) do not understand the distribution rules. How do I convince the custodian to send the distribution before it is put into her name.
Permalink Submitted by Alan - IRA critic on Wed, 2018-04-18 18:35
The RMD can be completed either before or after the surviving spouse elects to assume ownership. If the surviving spouse happens to be under 59.5 and wants to maintain the IRA as an inherited IRA to get penalty free distributions, the IRA will have to be retitled before any distribution can be made. Or if the surviving spouse wants to transfer the inherited IRA to another custodian, the year of death RMD can be taken either before or after the transfer. The only reason why TD could decline a distribution (RMD or otherwise) would be if the IRA has not been properly re titled or perhaps the form of death certificate or other beneficiary info has not been submitted.