Understanding the new IRS notice 2007-7
My client, Doug, inherited an IRA from his mother who was 79 when she died. Doug was told by his accountant that he did NOT have to take minimum distributions on this stretch IRA. Doug is 61 years old. PLEASE CLARIFY. Thanks.
Permalink Submitted by Alan Spross on Tue, 2008-03-25 21:06
I can’t see where 2007-7 even remotely addresses provisions regarding an directly inherited IRA. Sec 829 of the PPA does address the transfer of an inherited QRP interest to an inherited IRA, but this situation is apparently a directly inherited non spouse IRA account.
He certainly DOES have to take RMDs starting in the year after his mother’s death. Those RMDs would be based on his non recalculated single life expectancy per Pub 590, p 88. He must also take any RMDs which his mother had not taken before her death.