Uncashed RMD Check at Death
If a taxpayer dies after an RMD check was issued and received but before it was cashed, what can the beneficiary do with the check? Can it still be deposited into the decedent’s bank account or does it have to be reversed and reissued to the beneficiary?
Permalink Submitted by Alan - IRA critic on Fri, 2013-10-18 22:44
Niether. The check should be endorsed by the executor or personal rep and deposited to the estate checking account. Since the decedent had constructive receipt of the check before passing, the funds are estate funds, not assets of the IRA beneficiary (unless one and the same). The IRA custodian will issue the 1099R to the decedent and decedent will have satisfied this portion of his RMD before death.