Inherited IRAs
I have a client who has two Inherited IRAs pre-secure act. Her father is the decedent on both accounts, but one is an Inherited IRA, and the other is an Inherited IRA QP. Can we still combine them, or do they both have an RMD because of the slightly different registrations?
Permalink Submitted by Alan - IRA critic on Tue, 2023-12-26 19:56
Is there still an inherited QP, or has it been directly rolled over to an inherited IRA, and was that done by the end of the year following the year father passed? If still in different type plans, they cannot be combined, and they also cannot be combined if they have different RMD divisors.
Permalink Submitted by Robert Roselli on Tue, 2023-12-26 20:11
So, we need to take both RMDs. I thought that was the case, but thank you very much for confirming.
Permalink Submitted by Jerry A Feathers on Wed, 2023-12-27 16:51
Grandmother leaves annuity to 14 yr old grandson…she died in 2023 not having taken the RMD…no guardian papers in the work by her son for the grandson…can it stay at custodian until 18 when I assume 10 year rule starts?
Permalink Submitted by Alan - IRA critic on Wed, 2023-12-27 19:29
The 10 year rule starts next year because the beneficiary is not the child of the IRA owner. Further, annual beneficiary RMDs begin next year (years 1-9 of the 10 year rule) and the inherited IRA must be drained by the end of 2033. Those RMDs might trigger the kiddie tax for the parent. Finally, the grandson is responsible for completing the 2023 RMD of the decedent by no later than 4/15/2024.