If you inherit the IRA of an individual who has a required distribution for the year, you – as the beneficiary – must take any remaining required minimum distribution (RMD). Here is a situation that deals with this issue. John and Sue were both 75 years old last year. They both took their RMDs for the year. John died early in December. Sue was his beneficiary. She rolled his IRA into her own IRA in January. The question was – “What is Sue’s RMD for this year?"
If you are the beneficiary of a deceased IRA owner, you have to begin taking required minimum distributions (RMDs). In some cases, there is an RMD you must take in the year the IRA owner dies. The required beginning date (RBD) for the IRA owner to have started taking their RMD is April 1 after the year they turned age 70 ½. If the IRA owner died before their RBD, there is no year of death RMD that you need to take. However, if the IRA owner died after their RBD, there may be an RMD that you as their beneficiary have to take that year.
Basically, when the IRA owner dies on or after that
An advisor called recently with this scenario. A 20-something beneficiary, let’s call her Corey, had just inherited several retirement accounts from her 50-something father. Corey was the named beneficiary on each account. Would you have known how to handle each one of them?
This week's Slott Report Mailbag broadens the scope to issues that touch on IRAs, but also involve other forms of retirement accounts and retirement planning concepts. We look at 10-year averaging, required minimum distributions for employer plans and how to set up a Roth IRA for an older individual working a part-time job.
It might sound hard to believe, but amazingly enough, we are just a few days away from the start of April. Its first day, Monday, April 1st, is known as April Fool’s Day to many, but to those in the retirement world, it’s better known as the required beginning date. Unfortunately, this date often causes a great deal of confusion for pre- and post-retirees, so with that in mind, below we explore 5 key facts you need to know about the April 1st deadline. Make sure you know these rules well, or come April Fool’s Day, the joke might be on you.
This week's Slott Report Mailbag includes some of the more popular questions we receive each week. Can I contribute to a Roth IRA? What happens to my deceased parent's required minimum distribution (RMD)? We answer those questions and more in the question-and-answer below.
With many Americans living much longer due to advances in medicine, some seniors have asked whether Medicaid can take their IRA to pay for nursing home care, should they require it at some point. The answer to that question is complicated and should be addressed by an elder-care planner. Some general information follows.
This week's Slott Report Mailbag includes questions about where to put your IRA money, RMD requirements, and excess IRA contributions. Click to read a Q&A with our IRA Technical Expert.
Now that 2012 has passed and you are starting to think about gathering the information to prepare your 2012 tax return, you may have noticed that you forgot to take your IRA required minimum distribution (RMD) for 2012.
Year-end retirement planning is in full swing. We are less than a week away from Christmas and in two short weeks 2013 will be here. Financial advisors and their clients are working hard to develop a proactive plan to guard against rising taxes. Ed Slott has your answers on gifting, RMDs (required minimum distributions) and QCDs (qualified charitable distributions) in three year-end planning videos found below.
