RMD in the year of death
I have a client that passed away in December and she had not yet taken her RMD. She has 3 beneficiaries. Can I open an Inherited IRA for each beneficiary and take what would have been the required minimum distribution equally from the 3 new inherited IRA’s to satisfy the 2010 RMD?
Permalink Submitted by Alan Spross on Wed, 2010-12-22 22:25
Yes, the RMD can be taken after the IRA is retitled in beneficiary format or after the additional step of creating separate accounts. If this cannot get done prior to year end, the decedent’s RMD can be taken next year and a 5329 filed by each beneficiary to request that the penalty be excused. Under circumstances of the late year death, the waiver would most certainly be granted.