Who pays the tax?
75 year old IRA holder dies in 2011 before taking his RMD for the year.
I am fairly certain that the RMD amount which still must be paid (cannot be rolled over even by a spouse/beneficiary) should be paid to the designated beneficiary of the IRA.
My question: who reports the RMD in their tax return for 2011? The decedent or the beneficiary? I know in a surviving spouse and joint return situation it will make little or no difference, but my concern is with the non-spouse beneficiary situation.
Permalink Submitted by Alan Spross on Fri, 2011-12-09 17:29
It is reported by the beneficiary and taxable to the beneficiary. The beneficiary(s) acquire responsibility to complete the RMD for the decedent and the decedent’s final return need not make reference to RMDs not taken. Frequently, for late year deaths or delays in estate coordination, the RMD is not taken until the following year. In that case, the beneficiary(s) should file a 5329 requesting penalty waiver due to reasonable cause.