RMD For Deceased IRA Owner
A 75 yr. old IRA owner died in the beginning of 2010 having not taken his RMD for 2010. His wife, the sole beneficiary & the same age, rolls the entire balance over to her IRA. The custodian for the deceased husband and the wife are the same. Can the wife take the RMD from her new rollover account to meet the late husband’s RMD requirement or do we have to get the custodian to take back the RMD portion to the husband’s account and redistribute it the wife to satisfy the 2010 RMD? Since we are still in the same year I’m sure the matter can be resolved. What’s the best way – Thanks !!
Permalink Submitted by Alan Spross on Thu, 2010-09-30 18:25
When she did the rollover, she satisfied the RMD for his account. The infraction was that the RMD was not eligible for rollover to her IRA. To correct this, she should just tell the IRA custodian that she made an excess regular contribution to her IRA in the amount of the RMD. The custodian will calculate the earnings and distribute the net amount to her. This part is fairly simple.
The nasty portion is having to report this on their joint return in a matter that the IRS will understand. It will probably take a detailed explanatory statement. She would report the RMD as a distribution on line 15 of Form 1040, but any earnings on the excess contribution would also be reported as taxable income. At least she has passed the early withdrawal penalty age for the earnings on the excess contribution.