IRA bene dies before first stretch RMD deadline

Just want a consensus on my thinking here, please:

Aunt dies in August of ’17 at age 63, and leaves IRA to Grandma (her mother). Grandma dies in August of ’18, and did not take her first stretch payment (due 12/31/18) before she died. Grandma left the IRA to Grandchild as successor beneficiary.

I know that Grandchild can continue Grandma’s stretch on Grandma’s remaining life expectancy. Just to confirm, though – Grandchild is required to take Grandma’s scheduled stretch RMD by 12/31/18, right? Grandchild does not get a “float” until 12/31/19, correct?

Please and thank you!



I assume that aunt did not show grandchild as a contingent beneficiary and grandchild was named by grandma as her beneficiary. If so, you are correct that grandchild must continue the RMD schedule of grandma and should make up the 2018 beneficiary RMD ASAP and file Form 5329 to request that the penalty be waived for reasonable cause. Therefore, grandchild will have two beneficiary RMDs to take in 2019.



Much appreciated.



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