Multiple Beneficiaries create Separate Beneficiary IRA accounts
If you have two 50/50 non-spouse beneficiaries that each set up beneficiary IRAs this year, do you take the 12/31/2018 account value and divide by two to give you the value used to calculate each beneficiaries RMD amount?
Permalink Submitted by Alan - IRA critic on Wed, 2019-10-16 15:44
Yes. As for the RMD divisor, if the separate accounts were established by 12/31 of the year following the year of death, each non spouse beneficiary can use their own age for RMDs. If that deadline was missed (decedent passed prior to 2018), then both beneficiaries must use the age of the oldest beneficiary. Also, if the decedent was subject to RMDs for the year of death and did not complete them, the non spouse beneficiaries are jointly responsible for completing the decedent’s year of death RMD. A 5329 must be filed if the beneficiaries do not get this done by the end of the year of death.