Client's mother died 12/26/05 and has a balance in her IRA of about $45,000. Client was beneficiary of the IRA.
Company that has IRA told her that she will have to take $3790.20 out when she transfers it to her name this year.
But according to page 13-24, she would not have to transfer it to her name. Choice 5 says she can leave it in deceased name and take RMD. or Choice 2 says she could elect to take the entire balance by the end of the fifth year and no distribution need to be made before the end of the fifth year.
Any one have any ideas why they are telling her she will have to take that amount out. She may not realize she doesn't have to transfer it out of her mother's name now.
Thanks for the help.
Linda F
Company that has IRA told her that she will have to take $3790.20 out when she transfers it to her name this year.
But according to page 13-24, she would not have to transfer it to her name. Choice 5 says she can leave it in deceased name and take RMD. or Choice 2 says she could elect to take the entire balance by the end of the fifth year and no distribution need to be made before the end of the fifth year.
Any one have any ideas why they are telling her she will have to take that amount out. She may not realize she doesn't have to transfer it out of her mother's name now.
Thanks for the help.
Linda F
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