Taxpayer died in November. He had not take in 2018 RMD. There are two IRA's. IRA #1 has cash and goes to a third party. The third party will take the taxpayer's 2018 RMD with respect to that IRA. IRA #2 only holds land. Spouse, who is over 70 1/2, inherits IRA #2. She wants to take ownership of IRA #2 and then take taxpayer's 2018 RMD for IRA #2 out of her own separate trandtional IRA.
I think if spouse wants to take taxpayer's RMD for IRA #2 out of her own IRA, she must first complete the transfer of ownership of taxpayer's IRA so that she owns both IRA's at the date the RMD is taken. Thoughts?
The problem here is timing. The custodian of IRA #2 is draging their feet about the transfer of ownership. Spouse is concerned about not being able to take the required RMD by the 12/31/18 due date. If she takes RMD from her own IRA before the paperwork for the transfer of ownership of IRA #2 is complete, will it count? Will it matter if both the transfer of ownership and the RMD are completed by 12/31/18 but with the transfer occuring after the RMD is taken?
I understand another option might be to take the full RMD out of IRA #1 (the one that contained cash), but the third party beneficiary will not go along with that plan even if he receives full compensation for the additional amount removed from the IRA plus the amount of any tax that may be due on the RMD.