IRA Inheritor is under 59.5 yrs old – can he take more than RMD without penalty?
My brother and I will be splitting decedent’s IRA. Decedent satisfied her RMD for 2019 before death. We will be going on life expectancy-based RMDs in 2020. Brother will need to raise cash to pay his share of Mass. Estate Tax which will be due in July 2020. His 2020 RMD will not quite be enough to cover that. He will not turn 59.5 until a month after the estate tax is due.
Can he take an amount in his first RMD year, in excess of his RMD, on a date before he reaches 59.5, without incurring a penalty on the excess amount?
Thank you…
Permalink Submitted by Alan - IRA critic on Sat, 2019-11-30 23:09
Yes, he can distribute any amount he wishes as long as the RMD minimum is met. There is never an early withdrawal penalty on inherited IRA distributions. The 1099R will be coded 4 in Box 7 (death benefit).