RMD – Year of Death
If an IRA owner dies after his required beginning date, but before receiving the RMD during the year of death, who does that year of death RMD go to?
My understanding was the beneficiary(s). However, our client had an IRA annuity, and per the insurance company the RMD is paid to the estate regardless of any named beneficiary(s). Is that correct?
Permalink Submitted by Alan Spross on Mon, 2011-10-31 17:57
No. Any distributions including the decedent’s RMD must be paid to the beneficiaries named on the IRA agreement. If there is no person named, there is a good chance that the estate would be the default beneficiary under the agreement.
You probably need to talk to someone else at the insurance company unless the estate actually IS the beneficiary on the agreement or per the agreement.
Permalink Submitted by Dennis Prout on Mon, 2011-10-31 18:23
That’s what I thought. The children are named individually on this particular policy as Primary Bene’s.
Thanks!