Inherited IRA and RMD
Non-spouse beneficiary (adult child) inherits and IRA from parent in end . It’s with Custodian A. They want to transfer the IRA from Custodian A into Custodian B. Do they need to take RMD from Custodian A prior to transferring? Or can the RMD be taken any time in 2025? Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2025-03-05 23:13
No. The beneficiary can do a direct transfer to a new custodian at any time. This is typically originated through the new custodian. This is not a distribution, so the RMD will have to be distributed either before or after the transfer at any time in 2025. Therefore, the direct transfer is a non event with respect to the RMD.
Non spouse beneficiary should be aware that actual distributions are not eligible for rollover.
Permalink Submitted by Brian Smith on Thu, 2025-03-06 09:02
Thank you Alan, appreciate it!