NECPA in NEBRASKA Posted December 7, 2007 Report Share Posted December 7, 2007 ATX is supposed to call me back in a couple of hours, regarding the Kleinrock website, so I have a question. I have a client that insists that his young daughters can rollover an inherited IRA from their grandmother and not have to withdraw the money this year. 2007 is the 5th year and they need to withdraw it now as far as I am concerned. They didn't pull it out using the youngest's age. They pulled the first amount out in 2002. He has some article telling him that he can roll it, but everything that I can find says that the law change only applies if they died after 2006 and it was from a retirement plan, not an IRA. I have read that Congress intended for it to apply earlier, but that the IRS applied the law incorrectly. I don't think that it would work in this case anyway, because they already had made a distribution in 2002 and nothing since. Does anyone know if the IRS has made a change recently in their interpretation? Thanks! Bonnie Quote Link to comment Share on other sites More sharing options...
fredazcpa Posted December 7, 2007 Report Share Posted December 7, 2007 You are correct, IRS CODE Sec 401(a)(9) is the RMD rules, for a non spouse beneficiary, the must begin RMDs based on Beneficary by December 31 of the year following IRA owners death, OR entirely disributed by December 31 of the fifth year following death, Sounds like the started but did not following though, I would say pull the balance be the end of the year, pay the tax Quote Link to comment Share on other sites More sharing options...
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