inherited iras
if ira owner dies with 4 non-spouse beneficiaries (25% each) on dec 30, 2007 but the re-titled inherited iras (25% each) occurs on Jan 5,2008 is each persons required disribution in 2008 based on his or her age on Dec 31st or is it based on oldest beneficairy on Dec 31st, since it was not set up by Dec 31st?
Permalink Submitted by William Tuttle on Thu, 2008-01-10 04:25
You are jumping the gun on the year.
The requirement is for 12/31 of the year “following” the year of death. So the operative date is 12/31/2008. So they have all year for the distributions.
Permalink Submitted by larry shinder on Thu, 2008-01-10 05:46
thanks for the response. I understand the first distribution by the 4 beneficiaries (IE: ages 30,35,40,45) would need to be made by dec 31, 2008 but I question whether each beneficiary distributions in 2008 be based upon the 12/31/07 balance based upon the lifetime table of the oldest beneficairy (IE: 45 year old the factor would be 38.8) becauseThe the inherited iras were set up on jan 5, 2008 not by DEc. 31st, 2007 OR would each beneficiary be able to use his or her own factor (IE: 30 year old factor 53.3)
Permalink Submitted by Denise Appleby on Thu, 2008-01-10 12:28
Pan,
I think this answers your question
http://www.retirementdictionary.com/Whenseparateaccountingoccurs.htm