topic Yes in Retirement tax questions

Can the entire RMD for personal IRA and inherited IRA come from 1 of the accounts?

Personal-information-removed — Thu, 06 Jun 2019 06:27:48 GMT

We want to take the entire RMD from the inherited IRA.

Does the personal IRA have an RMD?

SweetieJean — Thu, 06 Jun 2019 06:27:49 GMT

Does the personal IRA have an RMD?

Yes

Personal-information-removed — Thu, 06 Jun 2019 06:27:51 GMT

Yes

Yes in 2019

Personal-information-removed — Thu, 06 Jun 2019 06:27:51 GMT

Yes in 2019

Then why are you asking now?

SweetieJean — Thu, 06 Jun 2019 06:27:52 GMT

Then why are you asking now?

Because it is a slow time in accounting and planning ahead.

Personal-information-removed — Thu, 06 Jun 2019 06:27:54 GMT

Because it is a slow time in accounting and planning ahead.

No, RMDs from inherited IRAs are not permitted to be aggr...

dmertz — Thu, 06 Jun 2019 06:27:55 GMT

No, RMDs from inherited IRAs are not permitted to be aggregated with RMDs of personal IRAs.

The RMD for the inherited IRA must come from the inherited IRA. The aggregate of the RMDs from personal IRAs can come from the individual's personal IRAs in any combination. (If there is only one personal IRA, the RMD for that IRA must come from that IRA.)

If you are the spouse of the deceased and the sole benefi...

dmertz — Thu, 06 Jun 2019 06:27:57 GMT

If you are the spouse of the deceased and the sole beneficiary of the account, you are permitted to treat the inherited IRA as your own. In that case, if you treat the IRA as your own in some year after the deceased's year of death, you are treated as IRA owner for the entire year (and subsequent years) and your RMD for that year will based on you as owner so it will be aggregatable with the RMDs of your other personal IRAs. Whether it's beneficial for a spouse beneficiary to treat the inherited IRA as the spouse's own will depend on the relative ages of the deceased and the spouse and whether it will be beneficial for the spouses' beneficiaries to be able to treat the IRA as inherited from the spouse as owner instead of as successor beneficiaries.

A non-spouse beneficiary cannot treat the inherited IRA as their own.

"we want" Sounds like non-spouse.

SweetieJean — Thu, 06 Jun 2019 06:28:02 GMT

"we want" Sounds like non-spouse.

Yes. Inherited from father as a designated recipient.

Personal-information-removed — Thu, 06 Jun 2019 06:28:03 GMT

Yes. Inherited from father as a designated recipient.

Then the inherited IRA must be maintained separately and...

macuser_22 — Thu, 06 Jun 2019 06:28:05 GMT

Then the inherited IRA must be maintained separately and kept in the name of your father with you as benificuary. The RMD is separate and calculated separately and differently from your own RMD.

See IRS Pub 590B for information. - "IRA beneficiaries"
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590b#en_US_2017_publink1000230750">https://www.irs.gov/publications/p590b#en_US_2017_publink1000230750</a>

Re: If you are the spouse of the deceased and the sole benefi...

AMShep — Tue, 17 Dec 2019 05:58:53 GMT

OK - so if I am the spouse and sole beneficiary I can treat the account as my own - does this apply even if I do not roll the account into my own, but leave it as an inherited account? If I treat it as my own - do I still report it as RMD if I am not required to take based on my own age?

The deceased would have been 70.5 in 2016 - but I will not be 70.5 until2022...

Re: If you are the spouse of the deceased and the sole benefi...

dmertz — Tue, 17 Dec 2019 14:16:13 GMT

AMShep, because your spouse would have reached age 70.5 in 2016, RMDs as spouse sole beneficiary were required to begin by you in 2016 unless you assumed ownership of the IRA. If for any year a a sole spouse beneficiary fails to take the full amount of RMD required as beneficiary, the inherited IRA automatically defaults to owned status for that year and beyond. However, unless you inform the IRA custodian of this change to owned status and have the account titling changed to reflect that, the custodian will be unable to provide Forms 1099-R coded correctly.

There is no real difference between reporting an RMD and any other distribution. TurboTax only asks the amount that was RMD to be sure that you can only report the roll over or Roth conversion of an amount that is in excess of the RMD. TurboTax separately asks if you completed your RMD to be able to prepare Form 5329 if you did not.