RMD not taken in year of death- Taken from same account?
I remember reading or hearing that when the decedant of an IRA wa over 701/2 dies without having taken the RMD for that year that the RMD is taken by the beneficiary and taxed to them. I also remember that this RMD should be taken from the Decedant’s IRA account BEFORE it is transferred over to the inherited IRA for the benefit of the beneficiary. Can you tell me where you wrote this or where I heard it from. I am looking for the reference source if I can find it. Thanks.
Permalink Submitted by Alan Spross on Wed, 2008-07-30 02:35
The att’d copy of the Regs are the only reference I am aware of, and as you will see, it does not directly address whether the RMD must be taken before or after the separate accounts are established. I think as long as the beneficiary takes the RMD for the year of owner’s death, the IRS will be satisfied.
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Q–4. For required minimum distributions during an employee’s lifetime, what is the applicable distribution period?
A–4. (a) General rule. Except as provided in paragraph (b) of this A–4, the applicable distribution period for required minimum distributions for distribution calendar years up to and including the distribution calendar year that includes the employee’s date of death is determined using the Uniform Lifetime Table in A–2 of §1.401(a)(9)-9 for the employee’s age as of the employee’s birthday in the relevant distribution calendar year. If an employee dies on or after the required beginning date, the distribution period applicable for calculating the amount that must be distributed during the distribution calendar year that includes the employee’s death is determined as if the employee had lived throughout that year. Thus, a minimum required distribution, determined as if the employee had lived throughout that year, is required for the year of the employee’s death and that amount must be distributed to a beneficiary to the extent it has not already been distributed to the employee.
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