RMD for Inherited IRA


J

John Beurket

Extracted from Publication 590
Miscellaneous Rules for Required Minimum Distributions ....
More than one IRA. If you have more than one traditional IRA, you must determine a separate required minimum distribution for each IRA. However, you can total these minimum amounts and take the total from any one or more of the IRAs.
There is no distinction between inherited and non inherited IRAs in the
above statement. If I Use a withdrawal from an inherited IRA to satisfy
my RMD for the non inherited IRA, I will prolong the life of the
consolidation. What does the IRS say about this tactic?

John B.
 
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J

JoeTaxpayer

Extracted from Publication 590


There is no distinction between inherited and non inherited IRAs in the
above statement. If I Use a withdrawal from an inherited IRA to satisfy
my RMD for the non inherited IRA, I will prolong the life of the
consolidation. What does the IRS say about this tactic?
Nice try. If it's an inherited IRA, and maintained as such, it's titled
a bit differently than a traditional IRA. You can't mix your funds with
it, and it has its own RMD. What you propose is not allowed.
Joe
 
J

John Beurket

Nice try. If it's an inherited IRA, and maintained as such, it's titled
a bit differently than a traditional IRA. You can't mix your funds with
it, and it has its own RMD. What you propose is not allowed.
Joe
Can you give me a reference?
 
A

Alan

Extracted from Publication 590


There is no distinction between inherited and non inherited IRAs in the
above statement. If I Use a withdrawal from an inherited IRA to satisfy
my RMD for the non inherited IRA, I will prolong the life of the
consolidation. What does the IRS say about this tactic?

John B.
Your RMD for any year is based on the total balances of all IRA accounts
as of 12/31 of the prior year. As all IRAs are not alike, you should
always compute the RMD for each IRA account and then add all the
individual RMDs together to arrive at the required amount for the year.
You may then withdraw the amount from any combination of your IRA
accounts. The reason the IRS and I tell people to do this is that the
life expectancy may be different for the IRAs you own. E.g., you may
own an IRA that you inherited from another individual who had already
started taking RMDs and you had a longer life expectancy. You would use
your age in Table I of Pub 590 to determine the divisor for that
account. You may also own your own IRA with your spouse who is more than
10 years younger than you, as the sole beneficiary. You would have to
use Table II in Pub 590 to determine the divisor for that account. Add
the two RMDs together to determine the annual requirement. Take it out
of your IRAs any way you want.
 
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J

John Beurket

Beautiful Phil, I was confident in my answer, but was having trouble
finding the reg. Thanks.
Thanks all. I knew that there must be a reason that it was not allowed.

John B.
 

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