Inherited IRA RMD question
I have a Client, Age-72, with a Traditional Inherited IRA who has taken it as her own. She is a Non-Spouse Designated Beneficiary. It is titled as:
Name
Inherited IRA
Bene of —–
Address
The Inherited Traditional IRA was received several years ago, so the year-of-death RMD was taken by the Decedent.
Client also has her own Individual Traditional IRA.
The Inherited Traditional IRA is in an Annuity, while the Individual Traditional IRA is with a Wire House.
The Client wants to keep the Inherited Traditional IRA intact and take the RMDs for both IRAs from the IRA at the Wire House.
The Wire House is refusing to provide/permit an RMD for the Inherited IRA, and is insisting that “IRS Regulations” requires that RMDs must be taken from each IRA.
After reviewing the 2017 Pub 590-B, I cannot find any mention that RMDs from Inherited IRAs must be taken from the Inherited IRA – spousal or non-spousal.
Page 12 of the 2017 Pub 590-B, upper left column, under the heading Miscellaneous Rules for RMD; second paragraph titled “More Than One IRA” states that RMDs from multiple IRAs can be taken from one IRA, as long as the total RMDs have been taken.
There is no mention of a difference between an Inherited Traditional IRA and a normal Traditional IRA.
Am I missing something – or is the wire house blowing smoke to preserve AUM???
The CPA is doubting my knowledge…
Please share your thoughts at your earliest convenience.
Permalink Submitted by David Mertz on Wed, 2018-10-17 22:16