Rball4 Posted January 14, 2014 Posted January 14, 2014 One person DB plan terminates in 2013. Owner takes RMD prior to the rollover to an IRA. Is RMD also required for IRA in year of rollover? This seems like a double-hit.
Lou S. Posted January 14, 2014 Posted January 14, 2014 Yes but presumably the IRA balance on 12/31/12 was $0 so the 2013 RMD for the IRA is $0.
Rball4 Posted January 14, 2014 Author Posted January 14, 2014 Thank you, Lou. I knew I missed a step.
BG5150 Posted January 14, 2014 Posted January 14, 2014 Or, if the IRA had a balance, the RMD calculation would not include the rollover until the following year. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Rball4 Posted January 14, 2014 Author Posted January 14, 2014 No balance in this case, but thank you for that note.
BG5150 Posted January 14, 2014 Posted January 14, 2014 A lot of people assume that people rollover to brand new IRAs, but it's not always the case. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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