Permalink Submitted by Alan - IRA critic on Mon, 2015-02-02 20:42
The IRS Regs indicate that any beneficiary, not just a designated beneficiary must distribute the year of death RMD. Of course, that RMD will not be taxable to the beneficiary. Not sure if the charity is subject to the excise tax, but if the lump sum distribution is not completed in the year of death, it couldn’t hurt for the charity to file a 5329 to request a penalty waiver.
Permalink Submitted by Alan - IRA critic on Mon, 2015-02-02 20:42
The IRS Regs indicate that any beneficiary, not just a designated beneficiary must distribute the year of death RMD. Of course, that RMD will not be taxable to the beneficiary. Not sure if the charity is subject to the excise tax, but if the lump sum distribution is not completed in the year of death, it couldn’t hurt for the charity to file a 5329 to request a penalty waiver.