Inherited IRA and RMD question (1 Viewer)

[Ben & Jerry's]

My father passed away on 1/03/24. My 2 sisters and I are each 1/3 beneficiaries of his IRA with a current value approx 100k

I am 58, and my siblings are 62 and 64.

I chose to roll my portion in to an inherited IRA. One of my sisters (62), opted to cash out and the other was keeping half invested and cashing out the rest.

My dad had not yet taken his RMD for 2024 and we would be required to take it. The rep from PNC has already allocated my 33% to the new IRA but we haven't satisfied the RMD

The guy told me if I pulled 1/3 of the RMD out myself (approx $1850 of the $5500 requirement), that would satisfy the distribution since my sisters were taking even larger amounts. Would their distributions alone satisfy the RMD where I could leave mine alone?

Is this correct? Will it be credited properly? (I understood there are tax penalties for missing a RMD)

I'm on the 10 year rule beginning in 2025 and I'm wondering if I must take yearly distributions or can I wait even in to the 10th year and take it all, tax ramifications aside.

 

[mr. furley]

My father passed away on 1/03/24. My 2 sisters and I are each 1/3 beneficiaries of his IRA with a current value approx 100k

I am 58, and my siblings are 62 and 64.

I chose to roll my portion in to an inherited IRA. One of my sisters (62), opted to cash out and the other was keeping half invested and cashing out the rest.

My dad had not yet taken his RMD for 2024 and we would be required to take it. The rep from PNC has already allocated my 33% to the new IRA but we haven't satisfied the RMD

The guy told me if I pulled 1/3 of the RMD out myself (approx $1850 of the $5500 requirement), that would satisfy the distribution since my sisters were taking even larger amounts. Would their distributions alone satisfy the RMD where I could leave mine alone?

Is this correct? Will it be credited properly? (I understood there are tax penalties for missing a RMD)

I'm on the 10 year rule beginning in 2025 and I'm wondering if I must take yearly distributions or can I wait even in to the 10th year and take it all, tax ramifications aside.

per the SECURE Act the rule requires beneficiaries who aren't taking Life Expectancy payments to withdraw the entire balance by 12/31 of the 10th anniversary year of the original owner's death

there isn't any annual RMD for the bene. the only requirement is that the entire balance be disbursed by the end of that 10th year.

but it's only applicable on Inherited IRAs when the original owner's date of death occurred in or after 2020 but before the Required Beginning Date.

 

[Mrs. Rannous]

there isn't any annual RMD for the bene

But the original owner was still required to take it, which is the question here.

 

[mr. furley]

there isn't any annual RMD for the bene

But the original owner was still required to take it, which is the question here.

he mentioned the 10-year rule

"it's only applicable on Inherited IRAs when the original owner's date of death occurred in or after 2020 but before the Required Beginning Date."

 

[titusbramble]

Don't know anything about what you're asking but sorry to hear about your dad

 

[Mrs. Rannous]

there isn't any annual RMD for the bene

But the original owner was still required to take it, which is the question here.

he mentioned the 10-year rule

"it's only applicable on Inherited IRAs when the original owner's date of death occurred in or after 2020 but before the Required Beginning Date."

He did. But his RMD and his father's RMD are two different issues.

 

[Mrs. Rannous]

The guy told me if I pulled 1/3 of the RMD out myself (approx $1850 of the $5500 requirement), that would satisfy the distribution since my sisters were taking even larger amounts. Would their distributions alone satisfy the RMD where I could leave mine alone?

I would call PNC back and keep asking until they are very clear about the answers. You might want to move the account to Vanguard or Fidelity. They actually give complete and clear answers.

T Rowe Price, not at all. I have no idea about other establishments.

 

[Lion to myself]

My father passed away on 1/03/24. My 2 sisters and I are each 1/3 beneficiaries of his IRA with a current value approx 100k

I am 58, and my siblings are 62 and 64.

I chose to roll my portion in to an inherited IRA. One of my sisters (62), opted to cash out and the other was keeping half invested and cashing out the rest.

My dad had not yet taken his RMD for 2024 and we would be required to take it. The rep from PNC has already allocated my 33% to the new IRA but we haven't satisfied the RMD

The guy told me if I pulled 1/3 of the RMD out myself (approx $1850 of the $5500 requirement), that would satisfy the distribution since my sisters were taking even larger amounts. Would their distributions alone satisfy the RMD where I could leave mine alone?

Is this correct? Will it be credited properly? (I understood there are tax penalties for missing a RMD)

I'm on the 10 year rule beginning in 2025 and I'm wondering if I must take yearly distributions or can I wait even in to the 10th year and take it all, tax ramifications aside.

Consult a tax person or CFP for the best answer but my understanding is the following……

Each beneficiary must take their portion of the RMD: one beneficiary cannot satisfy the entire RMD amount or the shortfall of another beneficiary. After you satisfy the missed RMD, you will be required to take RMDs each year based on your life expectancy going forward (that will be the minimum withdrawal amount each year). The remaining balance would need to be withdrawn by the end of year 10.

 

[Mrs. Rannous]

My father passed away on 1/03/24. My 2 sisters and I are each 1/3 beneficiaries of his IRA with a current value approx 100k

I am 58, and my siblings are 62 and 64.

I chose to roll my portion in to an inherited IRA. One of my sisters (62), opted to cash out and the other was keeping half invested and cashing out the rest.

My dad had not yet taken his RMD for 2024 and we would be required to take it. The rep from PNC has already allocated my 33% to the new IRA but we haven't satisfied the RMD

The guy told me if I pulled 1/3 of the RMD out myself (approx $1850 of the $5500 requirement), that would satisfy the distribution since my sisters were taking even larger amounts. Would their distributions alone satisfy the RMD where I could leave mine alone?

Is this correct? Will it be credited properly? (I understood there are tax penalties for missing a RMD)

I'm on the 10 year rule beginning in 2025 and I'm wondering if I must take yearly distributions or can I wait even in to the 10th year and take it all, tax ramifications aside.

Consult a tax person or CFP for the best answer but my understanding is the following……

Each beneficiary must take their portion of the RMD: one beneficiary cannot satisfy the entire RMD amount or the shortfall of another beneficiary. You will be required to take RMDs each year based on your life expectancy (that will be the minimum withdrawal amount each year). The remaining balance would need to be withdrawn by the end of year 10.

I'm pretty sure that this year's RMD is only the father's. Their RMD's should kick in next year.

From Vanguard:

Non-spouse and when spouse is not sole primary beneficiary. An individual non-spouse beneficiary must begin taking RMDs on the basis of their own life expectancy by December 31 of the year after the owner's death. Multiple beneficiaries can take RMDs on the basis of their own life expectancies if all of the beneficiaries have established separate accounts by December 31 of the year after the owner's death and starting in that year. If all multiple beneficiaries have not established separate accounts by that December 31 date, all beneficiaries must take RMDs on the basis of the oldest beneficiary's life expectancy starting in the year after the owner's death.

 

[STEADYMOBBIN 22]

Don't know anything about what you're asking but sorry to hear about your dad

 

[matttyl]

So you’re transferring the assets into an inherited Ira held in your name. You will need to take RMDs by 12/31 of next year.

As he didn't take his RMD this year, an RMD must be taken this year (not sure if that can/should be done prior to you moving your portion into your inherited Ira or if it came be done after).

 

[Schmeabs]

They should have never moved money from your father's IRA to beneficiary IRAs before taking his 2024 RMD out of his IRA.