Inherited IRA RMD
IRA owner passed away 10/07. The IRA is in process of being split evenly 3 ways between non spouse beneficiaries. Do I use one third of the value of IRA on 12/31/07 as starting point to calculate RMD for 2008 even though money was not in inherited IRA yet?
Thanks in advance for your time and help.
Glenn
Permalink Submitted by Alan Spross on Tue, 2008-01-29 22:19
Yes, the 12/31/07 FMV applies.
In 2008, each separate account RMD can be based on the life expectancy of the holder of the separate account.
If the original owner was not current on his RMDs at death, the beneficiaries also must also distribute the shortfall, and since they would be late at this point, request that the penalty be excused on Form 5329.