aja8888
Moderator Emeritus
DW passed in early December 2022 and had a traditional IRA and has been taking RMDs for years. She took a RMD in February 2022, as required for the year ending 2021 account balance. I did the same for my IRA RMD for 2021.
Late December 2022, I filed an application to have her IRA transferred into mine as that was an option seeing I was the sole beneficiary. It took until January 8, 2023 to have that transfer made. So now both accounts have been merged and her IRA account is closed permanently.
At this point, I assume her and I will be required to take RMDs for the year ending 2022. Both of our accounts were active during the full year 2022 as hers was not closed out until January 8, 2023. On the application to transfer her IRA to mine, I did specify the date of death (December 8, 2022) and provided Schwab with the death certificate (both IRA’s are at Schwab).
The other day, I logged into my Schwab account and went to the “take my RMD” tab to see what amount is posted for me to withdraw. I expected that the combined RMD amount (the blended accounts) amount would be there and the RMD calculation would reflect the increased amount.
To my surprise, the RMD amount has been calculated on MY EOY account balance only. Since her account is closed, there is no way to see if Schwab had used her RMD ending balance in 2022 to calculate an amount of RMD to be pulled in 2023 and left that number within the closed account.
Questions are:
Is her IRA account subject to an RMD pull for the year ending 2022 (remember she passed in December 2022)?
If so, how does that get done since my account only shows that my RMD is calculated on my 2022 ending IRA account value and not the blended value?
Also, before the IRA transfer got completed, I asked Schwab what the 2022 ending balance was in her account and they gave me the figure over the phone (I had no account access).
Clearly, I am not sure where to go from here, but have lots of time.
Thanks for any guidance you can give.
Late December 2022, I filed an application to have her IRA transferred into mine as that was an option seeing I was the sole beneficiary. It took until January 8, 2023 to have that transfer made. So now both accounts have been merged and her IRA account is closed permanently.
At this point, I assume her and I will be required to take RMDs for the year ending 2022. Both of our accounts were active during the full year 2022 as hers was not closed out until January 8, 2023. On the application to transfer her IRA to mine, I did specify the date of death (December 8, 2022) and provided Schwab with the death certificate (both IRA’s are at Schwab).
The other day, I logged into my Schwab account and went to the “take my RMD” tab to see what amount is posted for me to withdraw. I expected that the combined RMD amount (the blended accounts) amount would be there and the RMD calculation would reflect the increased amount.
To my surprise, the RMD amount has been calculated on MY EOY account balance only. Since her account is closed, there is no way to see if Schwab had used her RMD ending balance in 2022 to calculate an amount of RMD to be pulled in 2023 and left that number within the closed account.
Questions are:
Is her IRA account subject to an RMD pull for the year ending 2022 (remember she passed in December 2022)?
If so, how does that get done since my account only shows that my RMD is calculated on my 2022 ending IRA account value and not the blended value?
Also, before the IRA transfer got completed, I asked Schwab what the 2022 ending balance was in her account and they gave me the figure over the phone (I had no account access).
Clearly, I am not sure where to go from here, but have lots of time.
Thanks for any guidance you can give.