Inherited IRA RMD to a trust account

[statsman]

I have a small inherited IRA held at Vanguard. DW and I also have a small trust account with Vanguard. Both are in a brokerage account. Is it possible to take the RMD, have the transaction complete to cash, and then submit a transfer to our trust account? I don't see this option documented on their website, and I haven't been able to contract someone at Vanguard to confirm my options.

 

[Dash man]

I have a small inherited IRA held at Vanguard. DW and I also have a small trust account with Vanguard. Both are in a brokerage account. Is it possible to take the RMD, have the transaction complete to cash, and then submit a transfer to our trust account? I don't see this option documented on their website, and I haven't been able to contract someone at Vanguard to confirm my options.

Why not? As long as you pay your taxes on the RMD, you can send the funds where you want to. Unless the trust has some rules preventing normal deposits, it isn’t a problem.

 

[statsman]

I think I attempted this before the accounts were changed to brokerage accounts, and it didn't work. I will submit the RMD transaction and see if the option is there now.

Edit: I don't see the option. I used to have a check sent via USPS, but now I see it wants a bank account linked. It shouldn't be this difficult.

 

[statsman]

According to Vanguard, they will not allow a direct transfer from an inherited IRA into a trust account. What I *can* do is transfer the RMD to the trust account's settlement funds. Once that transaction has completed, I can move the settlement funds into whatever investment I want within the trust account.

 

[Dash man]

That seems odd to me. The trust account’s settlement funds aren’t in the trust account?

 

[Dtail]

According to Vanguard, they will not allow a direct transfer from an inherited IRA into a trust account. What I *can* do is transfer the RMD to the trust account's settlement funds. Once that transaction has completed, I can move the settlement funds into whatever investment I want within the trust account.

Yeah appears to be a quirk with Fidelity too. In the end the desired result happens. Not sure why it can't be direct.

 

[pjigar]

According to Vanguard, they will not allow a direct transfer from an inherited IRA into a trust account. What I *can* do is transfer the RMD to the trust account's settlement funds. Once that transaction has completed, I can move the settlement funds into whatever investment I want within the trust account.

i.e. Vanguard would not let you do in-kind transfers. You have to liquidate position before you can transfer. I think that may have this restrictions due to the way they reuse backend IT engines which tracks cost-basis. Obviously cost-basis does not apply to IRA but the bak end system will try to track cost-basis either way.