Hi,

My father-in-law died in April 2012. He took his 2011 RMD from his IRA in 2011, but had not taken his 2012 RMD before he died. There are three equal beneficiaries to his IRA: his daughter (my wife), his son, and his wife/widow. The wife is a non-resident, non-U.S. citizen (she is a Norwegian citizen and comes to the U.S. for three months each year on a visitor’s visa). I understand that the beneficiaries are required to take the decedent’s 2012 RMD during 2012 since the deceased did not take them before his death, but that the IRS will be generally indifferent as to which beneficiary takes how much as long is the total is at least equal to the decedent’s 2012 RMD. I further understand that the widow will not be able to take future annual RMDs from her share as a beneficiary of the IRAs because of her residency/citizenship status, but instead will owe U.S. income tax on the entire amount of such share for tax year 2012.

First, are my understandings all correct? Second, if so, can the wife’s receipt of her 1/3 share of the IRAs as taxable income in 2012 count as the decedent’s 2012 RMD? That is, if the RMD for the decedent for 2012 was $1,000 and the wife’s share of the IRA as beneficiary is $5,000, all of it a taxable distribution to her in 2012, will that by itself satisfy the 2012 RMD and mean that the other beneficiaries would not have to take any distributions in 2012? Any help would be appreciated. Thanks.

Dan