Discussion:IRA RMD Date of Death
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Discussion Forum Index --> Advanced Tax Questions --> IRA RMD Date of Death
Discussion Forum Index --> Tax Questions --> IRA RMD Date of Death
Mspringston (talk|edits) said: | 9 July 2008 |
| I have a Client age 80 taking required min. distributions from IRA. He died this year before taking the full amount of his RMD. He did withdraw some but not the full amount. He has two named non-spouse beneficiaries. For this year the RMD is based on his age not the beneficiaries. At question is who can receive the remaing RMD this year. Can, or should it be paid to the decedent's estate or should it be distributed to the beneficiaries? I can not find an answer in Pub. 590 or the 408 reg's. Thanks for any help you can give me. | |
| 9 July 2008 | |
| I believe the IRA passes to the beneficiaries at death, and therefore the bene's need to take the remaining RMD but at the decedent's rate. This is off the top of my head, and in remembrance of what happened when my dad died. | |
Michaelstar (talk|edits) said: | 9 July 2008 |
| Joanmcq - your correct. The beneficiary of the account is required to take the amount of the MRD for the year of death whatever the decedent was required to take less what he/she actually did take in that year prior to their death. see Reg 1.401(a)(9)-5, A-4(a) Note: the MRD or any balance of that MRD must be taken by the end of that same year of death. | |
Death&Taxes (talk|edits) said: | 9 July 2008 |
| And, the distribution can be taken by either beneficiary....that is, it does not have to split as long as the correct amount is distributed...this from Wes' favorite book, Natalie Choate's Life and Death Planning for Retirement Benefits. In addition if there are named beneficiaries, the estate has no claim to the account. | |
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