RMD IN YEAR OF DEATH. | Ed Slott and Company, LLC

RMD IN YEAR OF DEATH.

The dad, widower, dies this year and leaves his IRA to 4 beneficiaries. The proceeds are properly mover to 4 inherited IRA accounts.Only one beneficiary takes the remainder of dad's required minimum distribution. In fact he took more than the RMD.

Does this meet the rules of completing the RMD for dad in the year of his death?

Should each of the 4 beneficiaries have taken their share of Dad's RMD in his year of death?

Per QA 4 of IRS Reg 1.401(a)(9)-5, the incomplete RMD for the year of death must be distributed by "a beneficiary". This means that any beneficiary or multiple beneficiaries in any proportion can complete that RMD. Therefore, in this situation, the other 3 beneficiaries do not have to take a distribution from their inherited IRAs since another beneficiary distributed enough to complete the year of death RMD.

 

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