RBD for Non Spouse Beneficiary of IRA

Submitted by Howard Hook on Mon, 2014-01-27 18:29

IRA owner, age 75 dies in June 2013 after satisfying their RMD for the year.
Non Spouse beneficiary takes a distribution in August 2013.

Does Non Spouse beneficiary have to take a distribution in 2014 if the distribution they took in August 2013 would otherwise satisfy their first year’s RMD?

It would seem that they do not since the IRS Regs say first distribution to the beneficiary needs to be made no later than Dec 31 of the year following date of death but I am not clear.

Thanks as always

Howard



Submitted by Alan - IRA critic on Mon, 2014-01-27 18:36

  • Howard, the beneficiary will still have to take an RMD for 2014 by 12/31/2014. The 2013 distribution cannot be credited against the 2014 RMD. However, it could be credited to the completion of the owner’s 2013 RMD if for any reason the owner’s distribution fell short of his actual RMD.
  • IRS rule on when the first RMD is due assumes that distributions before that year do not apply to the beneficiary RMD, but rather to the owner’s RMD for the year of death.


Submitted by Howard Hook on Mon, 2014-01-27 20:49

Thanks Alan as always for the helpHoward 



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