inherited IRA missed rmd
I have a client whose dad died in July of 2013. His RMD on two of his annuities had not been paid out as of the date of his death. He was 85…..He had 5 annuities and 3 the rmd had been paid out….The company on the two that were missed set up inherited IRA annuities with the first distribution being 2014….what should we do about the two not taken?
Permalink Submitted by Alan - IRA critic on Mon, 2014-02-17 16:54
The beneficiaries of the annuities need to complete the 2013 RMD asap and file a 5329 on their 2013 return requesting waiver of the penalty for reasonable cause. See the 5329 Instructions. The RMD will be taxable to the beneficiaries that receive the RMD in the year distributed. If the beneficiaries are different on these annuities, the RMD can be satisfied in any combination by these beneficiaries so coordination would be required to get this right.