About 20 years ago, I inherited an IRA from my father and my wife inherited an IRA from her father. Both parents were already taking their RMDs when they passed away. The inherited IRAs were transferred to us as our own IRAs and put in CDs at two different banks. We then each started getting yearly RMDs based upon our own ages.
My inherited IRA's check every year is for a different amount. This is because the percentage taken out of the CD is going up and, of course, some of that is offset by the yearly interest that the CD accrues.
But my wife's inherited IRA check is EXACTLY the same amount, year after year after year.
A few years ago, I called the bank holding her account and asked if the RMD calculations were being done correctly. They "researched" it and called me back to tell me, "everything is OK, that's the way the account was set up."
This still remains a mystery to me. The 1099-R's we receive each year show both accounts as a simple/SEP IRA and the distribution code as 4 (death).
Does anybody out there have an explanation as to what's going on?
My inherited IRA's check every year is for a different amount. This is because the percentage taken out of the CD is going up and, of course, some of that is offset by the yearly interest that the CD accrues.
But my wife's inherited IRA check is EXACTLY the same amount, year after year after year.
A few years ago, I called the bank holding her account and asked if the RMD calculations were being done correctly. They "researched" it and called me back to tell me, "everything is OK, that's the way the account was set up."
This still remains a mystery to me. The 1099-R's we receive each year show both accounts as a simple/SEP IRA and the distribution code as 4 (death).
Does anybody out there have an explanation as to what's going on?
Statistics: Posted by wa1fju — Sun Feb 11, 2024 8:39 pm — Replies 4 — Views 420