bene IRA has had bene IRA since 2002
mother died in 2002. son inherited the IRA. so he has had a bene IRA since 2002/2003. mother was of the RMD age. beneficiary never took RMD out. what are this options.
mother died in 2002. son inherited the IRA. so he has had a bene IRA since 2002/2003. mother was of the RMD age. beneficiary never took RMD out. what are this options.
Permalink Submitted by Alan Spross on Wed, 2011-12-14 02:42
Son should catch up on all the RMDs for 2003-2011 with the exception of 2009 when the RMD was waived. He should file a 5329 for each year (can be done together) requesting that the penalty be excused for reasonable cause and send a copy of the distribution statement for all these RMDs. He can take one total distribution and break them down by year. Perhaps the IRS will waive the penalty. He should provide the best reason for the omission that is available.
Starting in 2012, he can then continue life expectancy RMDs each year. His divisor for the first year of 2003 is based on the age he attained in 2003. That divisor is then reduced by 1.0 for each year thereafter.