Distribution by surviving children
Daughter currently age 39 inherited father’s IRA. His date of death was 1/26/2009. His date of birth was 9/17/47. By what date does the daughter have to take a minimum distribution?
Daughter currently age 39 inherited father’s IRA. His date of death was 1/26/2009. His date of birth was 9/17/47. By what date does the daughter have to take a minimum distribution?
Permalink Submitted by Alan Spross on Tue, 2011-06-28 21:50
Unless she is using the 5 year rule, her first RMD should have been distributed by 12/31/2010. If she missed that one, she can still use life expectancy RMDs if she takes the 2010 RMD ASAP. She also file 5329 for 2010 and pay the 50% tax on the amount that would have been the 2010 RMD. Her 2011 RMD should be taken before the end of this year. Both the 2010 and 2011 RMDs will be taxable on her 2011 return.
Since she is only 39, she will be better served to preserve her lifetime stretch for her RMDs. But if she plans to use the 5 year rule instead (perhaps there is a small balance), she does not have to drain the IRA until 12/31/2015. In that case there would be no penalty for missing the 2010 RMD.