Does a lump sum withdrawal satisfy future RMDs?
So glad to find this forum! CPAs have been largely unhelpful on this question.
Client inherited IRA #1 from her mother in 2005, took out half the value and then continued RMDs. She also inherited IRA #2 from her mother and did not touch it or take RMDs.
Would the large withdrawal from IRA #1 satisfy the future RMDs of IRA #2?
Many thanks!
Permalink Submitted by Alan - IRA critic on Thu, 2022-07-14 17:37
No. The large withdrawal, if done in 2006, would satisfy the RMD for both IRAs for that year, but not for any future years for either IRA. She must make up all the late RMDs for IRA 2, and then a 5329 for each year to request waiver of the penalties. Any amount distributed from IRA 1 in any year that exceeds the actual RMD for IRA 1 would count toward the RMD for IRA 2 because both IRAs were inherited from the same decedent.