Confirming transfer of inherited IRA doesn't impact RMD schedule/timing

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Topic Author
CashConfessions
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Joined: Sun Apr 02, 2017 10:24 pm

Confirming transfer of inherited IRA doesn't impact RMD schedule/timing

Post by CashConfessions »

I'm hoping the group can help me confirm my understanding that a transfer of an inherited IRA from one custodian to another should not impact the timing/amount of required RMDs under SECURE Act 1.0/2.0.

- I have an non-spouse IRA which I inherited prior to the SECURE Act (e.g., I can stretch RMDs across my lifetime)
- I would like to transfer this inherited IRA from Fidelity to Schwab to streamline administration. I realize the IRA will need to remain in its own account
- I want to confirm that the act of transferring the IRA will not change how it's treated by the IRS (e.g., require RMDs to empty the account within 10 years)

I can't find any evidence to suggest that transferring the IRA between custodians would impact RMDs, but it's impossible to prove a negative, so hoping someone with experience here can weigh in.
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Wiggums
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Re: Confirming transfer of inherited IRA doesn't impact RMD schedule/timing

Post by Wiggums »

Moving the account will NOT change the registration or the requirements to take RMDs.
"I started with nothing and I still have most of it left."
Topic Author
CashConfessions
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Joined: Sun Apr 02, 2017 10:24 pm

Re: Confirming transfer of inherited IRA doesn't impact RMD schedule/timing

Post by CashConfessions »

Thanks for confirming... just wanted the extra reassurance.
Alan S.
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Re: Confirming transfer of inherited IRA doesn't impact RMD schedule/timing

Post by Alan S. »

More importantly, a direct transfer is not a distribution. If you received a distribution (check made out to you) it would be taxable and not eligible for rollover.
Topic Author
CashConfessions
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Re: Confirming transfer of inherited IRA doesn't impact RMD schedule/timing

Post by CashConfessions »

Alan S. wrote: Tue Jun 11, 2024 8:38 am More importantly, a direct transfer is not a distribution. If you received a distribution (check made out to you) it would be taxable and not eligible for rollover.
A good reminder - thanks. Yes, this would be a trustee-to-trustee transfer.
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tuningfork
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Re: Confirming transfer of inherited IRA doesn't impact RMD schedule/timing

Post by tuningfork »

I did this recently (Vanguard to Fidelity) with an inherited IRA with RMDs stretched over my lifetime. Still works the same. I took my full RMD for the year prior to the transfer to make the 1099Rs simpler at tax time.
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