Here is our complex situation:
Our father "XXXXX XXXXX", born Nov 1917, died Sept 2012.
Minimum Required Distributions (MRD) on his traditional IRAs
was paid in 2012 after his death.
His daughter "XXXXX XXXXX", the executor, has received poor advice on handling the IRAs. "John", being confused in his latter years, confused "executor" with "beneficiary". His will divides all assets equally between the 3 children: Jane, "George" (me), and "Ralph" (my brother).
He had 4 IRAs. On all IRAs John had Jane as primary beneficiary (thinking it meant executor), on one had George as contingent beneficiary, and Ralph on none.
IRA #1 - Taken as a Beneficiary IRA by Jane. She then took a distribution of 2/3s of the assets and "gifted" George and Ralph each half, after deducting large tax liability. Then...
IRA #2 - Jane disclaimed 2/3s. George disclaimed 1/2 of the remaining. Each received Beneficiary IRAs (1/3 shares), using their own IRS Single Life Expectancy for MRDs. The remainder dropped into the estate and Ralph was given a check for his 1/3 , presumably taxable in total this year.
IRA #3 (Mid-sized) - Jane disclaimed 2/3s receiving a Beneficiary IRAs for 1/3 share using her own IRS Single Life Expct.for MRDs. Ralph and George were each given a check for his 1/3 , presumably taxable in total this year.
IRA #4 (large) - Again Jane disclaimed 2/3s receiving a Beneficiary IRAs (1/3 share). After insistence by George (me), the estate (2/3s) share IRA #4 was transferred to more cooperative bank. They have created a pair of Beneficiary IRAs from the estate for George and Ralph. These will require MRDs based on the deceased John's Single Life Expt. or about 24% per year.
Question: George received a distribution from the estate from IRA #3 (half the disclaimed remainder).
-> Can that distribution be used to cover the MRD of IRA #4 for this year? <-
I know similar IRAs can be grouped and MRD made from only one if sufficient to cover required amounts from the combined IRAs. In this case, IRA #3 was paid into an estate checking account and then my share was paid by check out of that account - not directly to me from the IRA holder.