RMD after death
Individual died in October. before taking her RMD for 2008. It’s 2009, and the beneficiaries have not yet settled the account. Is there some sort of grace period for them to take the RMD without being penalized?
Individual died in October. before taking her RMD for 2008. It’s 2009, and the beneficiaries have not yet settled the account. Is there some sort of grace period for them to take the RMD without being penalized?
Permalink Submitted by mk foss on Tue, 2009-01-06 01:14
No. There isn’t a grace period. The named beneficiary(ies) as of the date of death, should take the distribution now. They can attach a Form 5329 to their 2008 forms 1040 and request a waiver of the penalty.
A death so close to year end should be a good excuse but the IRS can only waive the penalty if the missed distribution is taken.
Permalink Submitted by Janine Janine on Thu, 2009-01-08 03:28
Does the beneficiary count the distribution as income on his/her return or is the distribution added to the final tax return of the decedent?
Thank you.
Permalink Submitted by Alan Spross on Thu, 2009-01-08 04:42
The RMD is reported and taxable to the beneficiary.