CWF's IRA/HSA Guidance - 2019 Transferring IRAs After Age 70½
Could she transfer her IRA from another institution
into this one here or not, since she is over 70½. She
is trying to consolidate.
A person who is subject to the RMD rules may
consolidate a number of IRAs at one bank.
A person can transfer an IRA subject to an RMD at
Bank #1 to Bank #2. The 2019 RMD then must be taken
from Bank #2 by 12/31/2019.
Transferring an RMD is permissible whereas taking a
distribution and rolling it over is not allowed.
The law has been designed so that there is a time a traditional
IRA will cease to exist so that the tax benefits
The law requires a person age 70½ or older to take a
RMD each year.
It appears your customer wants to get around the
In general, once an RMD is withdrawn it cannot be
re-contributed as an annual contribution or as a
The only exception I'm aware of is - if a person has
both a traditional IRA and a SEP-IRA or SIMPLE IRA, the
person must take an RMD from each such IRA each
year. However if the person is self-employed and is still
eligible for a SEP IRA contribution or a SIMPLE IRA
contribution, then the person can us the RMD amounts
as the source of cash to make their the SEP-IRA or SIMPLE