2010 RMD for death after RBD
Client in her 80’s passes away in 2010, hadn’t taken RMD yet.
IRA get split into to inherited IRA’s for two adult children.
Can/should the children take their portion of the mother’s RMD and report it on their taxes or does it go onto the estate tax return?
Permalink Submitted by Alan Spross on Tue, 2010-06-15 18:11
Each beneficiary would typically take their share of the client’s RMD, but they do not have to do it that way. If one beneficiary needs the funds, that beneficiary could take the full RMD and the other beneficiary would not take a distribution this year. The IRS is happy as long as the RMD is distributed and taxes paid, they don’t care how the beneficiaries split it up. But if neither of them needs the money, then each would typically take their share of the year of death RMD.
The beneficiary who takes the RMD reports the income. The RMD does not go on the final return of the client OR on the estate income tax return.