Inherited IRA – 1st RMD
We have a new client that has an Inherited IRA. She is a non spouse beneficiary. The decedent died in 12/2018. There are other beneficiaries in addition to our client. If the decedents IRA was not distributed into inherited IRA’s before 12/31/2018 how do we calculate our clients first RMD? Do we use the 12/31/2008 value and divided by her % of the account she received?
Thanks!
Permalink Submitted by Alan - IRA critic on Fri, 2019-10-04 20:16
The client’s first beneficiary RMD is due by 12/31/2019 based on the Table I divisor for the age of client at year end 2019. Yes, the account balance is her share of the 12/31/2018 inherited IRA balance. These beneficiaries are also jointly responsible for completing the decedent’s 2018 RMD if decedent did not complete any 2018 RMD before passing, and a 5329 would have to be filed for 2018 to request the penalty waiver in this situation..