RMD before Transfer of Assets
With the passage of the SECURE Act, we have a question about the RMD in the year of death. If an IRA owner is age 75 when he dies in 2020 before taking his RMD for the year, does the beneficiary have to take the RMD before the funds are transferred to another company as an inherited IRA? Or can the RMD amount be included in the transfer? Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2020-03-05 17:27
Either way. The remainder of the 2020 year of death RMD can be taken from either the current custodian inherited IRA or from the new inherited IRA after the transfer. It can be taken up to the end of 2020. The Secure Act had no effect on this requirement, but under the Secure Act the beneficiary is subject to the 10 year rule unless they qualify as an “eligible beneficiary”. If there is more than one beneficiary, please advise.