Decedent’s final RMD
If a decedent has not taken his final IRA RMD must the final RMD be taken from the decedent’s IRA or can it be taken after IRA has been transfered to the beneficiary? Thanks.
Frank Petranka
If a decedent has not taken his final IRA RMD must the final RMD be taken from the decedent’s IRA or can it be taken after IRA has been transfered to the beneficiary? Thanks.
Frank Petranka
Permalink Submitted by Alan - IRA critic on Thu, 2019-11-07 14:18
Almost all IRA custodians will transfer an inherited IRA to a new account so they do not have 2 SSNs assigned at different times to the same account. As such, the decedent’s unsatisfied RMD will have to be taken after transfer to the beneficiary’s new IRA account. And the IRS does not care as long as it is completed. Likewise, if the decedent made the mistake of naming his estate as beneficiary or failed to name a beneficiary and the estate inherited the IRA, the decedent’s final RMD can be made to individual beneficiary inherited IRAs after assignment of the estate inherited IRA to the beneficiaries by the executor. Sometimes this delay will result in the RMD not being completed in the year of death, but all that means is that a 5329 must be filed to request a penalty waiver and that IRS will grant in almost all cases.