RMD for IRA after death
We have a client that passed away in 2011. He had already starting taking RMD’s because he was over 70 1/2. He didn’t take an RMD from his IRA before his death. The IRA was moved to a beneficiary IRA for his Son. Does an RMD need to come out of the Beneficiary IRA? Is the amount of the RMD based on the fathers as if he didn’t pass away?
Permalink Submitted by Alan Spross on Thu, 2011-10-27 21:26
Yes, an RMD needs to come out of the beneficiary IRA in the amount of the shortfall of the father’s 2011 RMD. It will be taxable to the son.
Be sure that the client passed on or after his RBD, which is April 1st of the year following the year he reached 70.5. It is possible to be over 70.5 and still pass prior to the RBD. That probably did not happen here, but if it did there is no RMD required for 2011.