post death RMD
A father passes away in april 2007. He only took half of his RMD out before his death. His daughter (also the Beneficiary) took the remainder out by 12-31-2007. The Custodian ( B of A ) sent her the 1099 for the half that she took out under her SS# and not her fathers. Now she has to pay the taxes on her tax return. Is this right???? Shouldn’t the remainder RMD still be under the fathers SS# and on his final tax return???
Let me know
Permalink Submitted by Alan Spross on Thu, 2008-02-07 00:32
No, it is correct as it stands. Distributions paid to a beneficiary are taxable to the beneficiary. and cannot be transferred to the estate or the decedent’s final return.
The daughter should check if there was any recovered tax basis in the IRA from non deductible contributions per Form 8606. If so, a small portion of the distribution would be tax free, as she also inherits any unrecovered basis. If so, she should also file an 8606.
Of course, starting this year she will also be taking an annual taxable RMD from the account.