missed RMD adjusts year end balance?
Mom died 12/05 & son inherited IRA. No withdrawls ever. 12/31/07 $42K. Son’s age 38 in 2008. Can missed 06RMD & penalty lower the $42K so 07RMD is less than $900?
Son has 12/06 value & I will soon. Please confirm no 05RMD is needed.
Permalink Submitted by mk foss on Tue, 2008-12-16 17:26
Son was not required to take a distribution in 2005. If mom was over 70 1/2 and had passed her required beginning date, she was supposed to take a 2005 distribution.
When calculating the 2006, 2007 and 2008 RMDs you do not reduce the FMV of the IRA by the missed RMDs. Actual FMV must be used.