IRA inherited

[newbie]

Taxpayer inherited IRA, the deceased owner (taxpayers father) was required to take minimum distributions (81 years old).

Must the beneficiary that inherited the IRA take the RMD each year, with the entire balance of the IRA withdrawn by the end of the fifth year?

[Gene V]

Inherited IRA

Taxpayer inherited IRA, the deceased owner (taxpayers father) was required to take minimum distributions (81 years old).

Must the beneficiary that inherited the IRA take the RMD each year, with the entire balance of the IRA withdrawn by the end of the fifth year?

5) The beneficiary can leave the IRA in the name of the deceased
participant. RMD is determined as follows.
• If the decedent was already receiving RMD at the time of
death, the beneficiary can take out the distributions over the
longer of:
– The beneficiary’s own life based on the Single Lifetime Table
using the age of the beneficiary as of his or her birthday
in the year following the year of the decedent’s death, reduced
by one for each subsequent year, or
– The decedent’s life based on the Single Lifetime Table using
the age of the decedent as of his or her birthday in the year
of death, reduced by one for each subsequent year.

You can read number 1-4 in the TTB page 13-24

[newbie]

If you leave it in the name of the name of the deceased would it need to stay in the current IRA, that is you can not roll it over to a different institution?

Can you leave it at the same institution, say Fidelity, but put the funds into a different either less/more risky fund if available? Would it be up to the plan administrator? Or just not an option?

[Burke]

Leaving the IRA in the name of the deceased does not affect the trustee-to-trustee transfer rules, nor should it impact the investment selection ability. It will have the Name of the Deceased, FBO Name of the Beneficiary in its title, which means distributions will always be a Code 4. (No penalty). The beneficiary should be able to reinvest in different funds within Fidelity.